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A Tale of Two Games: Membership Versus Usage in Platform Competition

BY | October 18, 2010

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…

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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