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Group Hug: Platform Competition with User-Groups
| Content Provider | Scilit |
|---|---|
| Author | Markovich, Sarit Yehezkel, Yaron |
| Copyright Year | 2019 |
| Description | Journal: SSRN Electronic Journal We consider platform competition in the presence of small users and a usergroup. One platform enjoys a quality advantage and the other benefits from favorable beliefs. We study whether the group mitigates the users' coordination problem i.e., joining a low-quality platform because they believe that other users would do the same. We find that when the group is sufficiently large to facilitate coordination on the high-quality platform, the group may choose to join the low-quality one. When the group joins the more efficient platform it does not necessarily increase consumer surplus. Specifically, a non-group user benefits from a group with an intermediate size, and prefers a small group over a large group. The utility of a group user is also non-monotonic in the size of the group. |
| Related Links | http://www.netinst.org/Markovich_19-04.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3468410 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3468410 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2019-09-30 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Operations Research and Management Science Network Extremities |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |
