Estelle Cantillon, Pai-Ling Yin, Jul 27, 2010
Demand in platform competition is characterized by a 2-stage game: first, demanders decide whether to adopt a platform, and THEN they decide how much to use the platform. However, with the exception of Bedre & Calvano (2010) and Cantillon & Yin (2010), the distinction between membership demand and demand for usage is typically ignored. Consumers are assumed to make their membership choice only after considering usage. If membership and usage
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