Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Network Economics

Editor-in-Chief: Grzybowski, Lukasz

Ed. by Briglauer, Wolfgang / Goetz, Georg / Pereira, Pedro

4 Issues per year


IMPACT FACTOR 2017: 0.357
5-year IMPACT FACTOR: 0.894

CiteScore 2017: 0.64

SCImago Journal Rank (SJR) 2017: 0.315
Source Normalized Impact per Paper (SNIP) 2017: 0.770

Online
ISSN
1446-9022
See all formats and pricing
More options …
Volume 9, Issue 4

Issues

Failure to Launch: Critical Mass in Platform Businesses

David S. Evans / Richard Schmalensee
Published Online: 2010-12-03 | DOI: https://doi.org/10.2202/1446-9022.1256

Platform businesses add value by facilitating interactions between customers who are attracted in part by network externalities. Two-sided platform businesses with low costs of reversing participation status have become more important with the rise of the Internet. This essay is concerned with new businesses of this sort and the initial critical mass hurdle that they generally seem to face. In a very general model, we show how this hurdle depends on the nature of network effects, the dynamics of customer behavior, and the distribution of customer tastes. Weak, plausible assumptions about adjustment processes imply that platforms must get a sufficient number of members of both sides on board to launch successfully.

Keywords: network; two-sided; startup; platform

About the article

Published Online: 2010-12-03


Citation Information: Review of Network Economics, Volume 9, Issue 4, ISSN (Online) 1446-9022, ISSN (Print) 2194-5993, DOI: https://doi.org/10.2202/1446-9022.1256.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Carlo Maria Rossotto, Prasanna Lal Das, Elena Gasol Ramos, Eva Clemente Miranda, Mona Farid Badran, Martha Martinez Licetti, and Graciela Miralles Murciego
Competition and Regulation in Network Industries, 2018, Page 178359171880948
[2]
Yiyi Zhou and Shanjun Li
The Journal of Industrial Economics, 2018, Volume 66, Number 2, Page 423
[4]
Wenhui Fu, Qiang Wang, and Xiande Zhao
Industrial Management & Data Systems, 2018
[6]
André Veiga
International Journal of Industrial Organization, 2018
[7]
Vinicius Nardi, Felipe Zarpelon, Jorge Verschoore, and Mariana de Araújo
International Journal of Public Administration, 2018, Page 1
[8]
Debashis Saha and Varadharajan Sridhar
International Journal of Business Data Communications and Networking, 2013, Volume 9, Number 1, Page 1
[10]
Nina Tura, Antero Kutvonen, and Paavo Ritala
Technology Analysis & Strategic Management, 2017, Page 1
[11]
Maximilian Schreieck, Manuel Wiesche, and Helmut Krcmar
Information Technology for Development, 2017, Page 1
[12]
Xing Wan, Javier Cenamor, Geoffrey Parker, and Marshall Van Alstyne
Sustainability, 2017, Volume 9, Number 5, Page 734
[13]
André Veiga, E. Glen Weyl, and Alexander White
American Economic Review, 2017, Volume 107, Number 5, Page 191
[14]
Amitava Dutta, Abhinay Puvvala, Rahul Roy, and Priya Seetharaman
Technological Forecasting and Social Change, 2017, Volume 118, Page 28
[16]
Mingming Cheng
International Journal of Hospitality Management, 2016, Volume 57, Page 60
[17]
Jan Ondrus, Avinash Gannamaneni, and Kalle Lyytinen
Journal of Information Technology, 2015, Volume 30, Number 3, Page 260
[18]
Andrei Hagiu and Hanna Hałaburda
International Journal of Industrial Organization, 2014, Volume 34, Page 25
[19]
Michał Grajek and Tobias Kretschmer
International Journal of Industrial Organization, 2012, Volume 30, Number 6, Page 496
[20]
Stephen J. Appold and John D. Kasarda
Research in Transportation Business & Management, 2011, Volume 1, Number 1, Page 91

Comments (0)

Please log in or register to comment.
Log in