Monetizing Platforms: An Empirical Analysis of Supply and Demand Responses to Entry Costs in Two-Sided Markets

References

• Aguiar L, Waldfogel J (2018) Quality predictability and the welfare benefits from new products: Evidence from the digitization of recorded music. J. Political Econom. 126(2):492–524.Crossref, Google Scholar
• Aguiar L, Waldfogel J (2021) Platforms, power, and promotion: Evidence from Spotify playlists. J. Indust. Econom. 69(3):653–691.Crossref, Google Scholar
• Armstrong M (2006) Competition in two-sided markets. RAND J. Econom. 37(3):668–691.Crossref, Google Scholar
• Banerjee S, Dellarocas C, Zervas G (2021) Interacting user-generated content technologies: How questions and answers affect consumer reviews. J. Marketing Res. 58(4):742–761.Crossref, Google Scholar
• Bhargava HK, Wang K, Zhang X (2022) Fending off critics of platform power with differential revenue sharing: Doing well by doing good? Management Sci. 68(11):8249–8260.Link, Google Scholar
• Brynjolfsson E, Hu Y, Smith MD (2003) Consumer surplus in the digital economy: Estimating the value of increased product variety at online booksellers. Management Sci. 49(11):1580–1596.Link, Google Scholar
• Byers JW, Mitzenmacher M, Zervas G (2012a) Daily deals: Prediction, social diffusion, and reputational ramifications. Proc. Fifth ACM Internat. Conf. Web Search Data Mining WSDM ‘12 (Association for Computing Machinery, New York), 543–552.Crossref, Google Scholar
• Byers JW, Mitzenmacher M, Zervas G (2012b) The Groupon effect on Yelp ratings: A root cause analysis. Proc. 13th ACM Conf. Electronic Commerce EC ‘12 (Association for Computing Machinery, New York), 248–265.Crossref, Google Scholar
• Callaway B, Sant’Anna PH (2021) Difference-in-differences with multiple time periods. J. Econometrics 225(2):200–230.Crossref, Google Scholar
• Constantinides P, Henfridsson O, Parker GG (2018) Introduction—platforms and infrastructures in the digital age. Inform. Systems Res. 29(2):381–400.Google Scholar
• Devlin J, Chang M-W, Lee K, Toutanova K (2018) BERT: Pre-training of deep bidirectional transformers for language understanding. Preprint, submitted October 11, https://arxiv.org/abs/1810.04805v1.Google Scholar
• Dixit AK, Stiglitz JE (1977) Monopolistic competition and optimum product diversity. Amer. Econom. Rev. 67(3):297–308.Google Scholar
• Farronato C (2019) Pricing mechanisms in online markets. Vernengo M, Perez Caldentey E, Rosser BJ Jr, eds. The New Palgrave Dictionary of Economics, Living ed. (Palgrave Macmillan, London).Google Scholar
• Fleder D, Hosanagar K (2009) Blockbuster culture’s next rise or fall: The impact of recommender systems on sales diversity. Management Sci. 55(5):697–712.Link, Google Scholar
• Ghose A, Ipeirotis PG, Li B (2014) Examining the impact of ranking on consumer behavior and search engine revenue. Management Sci. 60(7):1632–1654.Link, Google Scholar
• Hagiu A (2009) Two-sided platforms: Product variety and pricing structures. J. Econom. Management Strategy 18(4):1011–1043.Crossref, Google Scholar
• Hirshman A (1964) The paternity of an index. Amer. Econom. Rev. 54(5):761–762.Google Scholar
• Kovács B, Sharkey AJ (2014) The paradox of publicity: How awards can negatively affect the evaluation of quality. Admin. Sci. Quart. 59(1):1–33.Crossref, Google Scholar
• Li H (Alice), Jain S, Kannan PK (2019) Optimal design of free samples for digital products and services. J. Marketing Res. 56(3):419–438. Crossref, Google Scholar
• Liaukonytė J, Tuchman A, Zhu X (2023) Frontiers: Spilling the beans on political consumerism: Do social media boycotts and buycotts translate to real sales impact? Marketing Sci. 42(1):11–25.Link, Google Scholar
• Lin Z, Zhang Y, Tan Y (2019) An empirical study of free product sampling and rating bias. Inform. Systems Res. 30(1):260–275.Link, Google Scholar
• Liu Y, Lambrecht A, Deng Y (2019) Price promotions and online product evaluations. Working paper, University College London, London.Google Scholar
• Mankiw NG, Whinston MD (1986) Free entry and social inefficiency. RAND J. Econom. 17(1):48–58.Crossref, Google Scholar
• Mo J, Li Z (2018) Is product sampling good for brands’ online word of mouth? Thirty-Ninth Internat. Conf. Inform. Systems (San Francisco, CA).Google Scholar
• Nagaraj A, Ranganathan A (2022) Singing your own praises: Digital cultural production and gender inequality. Working paper, University of California Berkeley, Berkeley.Google Scholar
• Parker GG, Van Alstyne MW (2005) Two-sided network effects: A theory of information product design. Management Sci. 51(10):1494–1504.Link, Google Scholar
• Parker GG, Van Alstyne MW, Choudary SP (2016) Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You (W. W. Norton & Company, New York).Google Scholar
• Pu J, Kwark Y, Han SP, Ye Q, Gu B (2024) Uncertainty reduction vs. reciprocity: Understanding the effect of a platform-initiated reviewer incentive program on regular ratings. Inform. Systems Res. 35(3):1363–1381.Link, Google Scholar
• Qiao D, Lee S-Y, Whinston AB, Wei Q (2020) Financial incentives dampen altruism in online prosocial contributions: A study of online reviews. Inform. Systems Res. 31(4):1361–1375.Link, Google Scholar
• Rietveld J, Schilling MA, Bellavitis C (2019) Platform strategy: Managing ecosystem value through selective promotion of complements. Organ. Sci. 30(6):1232–1251.Link, Google Scholar
• Rochet J-C, Tirole J (2003) Platform competition in two-sided markets. J. Eur. Econom. Assoc. 1(4):990–1029.Crossref, Google Scholar
• Shannon CE (1948) A mathematical theory of communication. Bell System Tech. J. 27(3):379–423.Crossref, Google Scholar
• Sim J, Cho D, Hwang Y, Telang R (2022) Frontiers: Virus shook the streaming star: Estimating the COVID-19 impact on music consumption. Marketing Sci. 41(1):19–32.Link, Google Scholar
• Spence M (1976) Product differentiation and welfare. Amer. Econom. Rev. 66(2):407–414.Google Scholar
• Waldfogel J (2003) Preference externalities: An empirical study of who benefits whom in differentiated-product markets. RAND J. Econom. 34(3):557–569.Crossref, Google Scholar
• Waldfogel J (2017) How digitization has created a golden age of music, movies, books, and television. J. Econom. Perspect. 31(3):195–214.Crossref, Google Scholar
• Weyl EG (2010) A price theory of multi-sided platforms. Amer. Econom. Rev. 100(4):1642–1672.Crossref, Google Scholar
• Wu Y, Zhu F (2022) Competition, contracts, and creativity: Evidence from novel writing in a platform market. Management Sci. 68(12):8613–8634.Google Scholar
• Zegners D (2019) Building an online reputation with free content. Preprint, submitted November 15, https://doi.org/10.2139/ssrn.2753635.Google Scholar