Demand Spillovers in Digital Platforms - by Joost Rietveld
Platform Papers is a blog about platform competition and Big Tech. The blog is linked to platformpapers.com, an online repository that collects and organizes academic research on platform competition. By Manav Raj. Digital platforms have revolutionized markets by connecting end users to a vast array of complementors offering goods or services. Whether it’s Spotify for music, Amazon for books, or Netflix for movies, these platforms don’t just connect consumers to products—they also shape how businesses interact with one another. Traditionally, competition among businesses has been viewed as zero-sum: a rival’s success comes at a focal firm’s expense. But on platforms, that may not always be the case. A competitor’s success—like a new product launch—can drive demand for you, too. My research, published in the Strategic Management Journal, sheds light on this phenomenon by studying the Spotify music streaming platform. The findings reveal when competitors help versus hurt and offer action
Platform Papers is a blog about platform competition and Big Tech. The blog is linked to platformpapers.com, an online repository that collects and organizes academic research on platform competition. By Manav Raj. Digital platforms have revolutionized markets by connecting end users to a vast array of complementors offering goods or services. Whether it’s Spotify for music, Amazon for books, or Netflix for movies, these platforms don’t just connect consumers to products—they also shape how businesses interact with one another. Image source: The Author, via gen AI. Traditionally,…
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