Competitive Advantage of Sellers in Multi-Sided Markets
Type
conference contribution
Date Issued
2016-09-17
Author(s)
Düsterhoff, Henning
Abstract
It is a well-documented phenomenon that multi-sided markets can lead to bottleneck situations or platform monopolies that leave sellers without economic surplus yet we know little about strategies that platform sellers can employ if they are constrained to participate in such a market. Therefore we ask: Which strategic options allow incumbent sellers to achieve a competitive advantage in a multi-sided market, despite an unfavorable market structure? We find that multi-sidedness impacts the effectiveness of strategic options because their use can induce competitive pressures and decrease externalities. We contribute to the literature in platform economics and multi-sided markets by introducing sellers’ heterogeneity that can lead to sustained competitive advantage. We show complex linkages exist between market structure and firm-specific advantages, a promising area of future research.
Language
English
HSG Classification
contribution to scientific community
Event Title
36th Strategic Management Society (SMS) Annual International Conference
Event Location
Berlin, Germany
Event Date
17.-20.09.2016
Subject(s)
Division(s)
Eprints ID
249689