Impact of Indirect Network Effect between Two Sides on the Diffusion and Pricing of Platform

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Platforms diffusion is sophisticated because of indirect network effect between two sides; there will be a peak or several peaks of diffusion rate. Platforms diffusion can be divided to two stages: the stage before its take-off of potential market size and the stage after its take-off of potential market size. At the stage before its take-off of potential market size, platforms diffusion on one side has restriction in its diffusion on the other side. At the stage after its take-off of potential market size, platforms diffusion on one side accelerates its diffusion on the other side.

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4448-4451

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August 2013

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© 2013 Trans Tech Publications Ltd. All Rights Reserved

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