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dc.contributor.authorEvans, David S.
dc.contributor.authorSchmalensee, Richard
dc.date.accessioned2013-01-30T20:38:04Z
dc.date.available2013-01-30T20:38:04Z
dc.date.issued2010-12
dc.date.submitted2010-09
dc.identifier.issn1446-9022
dc.identifier.urihttp://hdl.handle.net/1721.1/76685
dc.description.abstractPlatform businesses add value by facilitating interactions between customers who are attracted in part by network externalities. Two-sided platform businesses with low costs of reversing participation status have become more important with the rise of the Internet. This essay is concerned with new businesses of this sort and the initial critical mass hurdle that they generally seem to face. In a very general model, we show how this hurdle depends on the nature of network effects, the dynamics of customer behavior, and the distribution of customer tastes. Weak, plausible assumptions about adjustment processes imply that platforms must get a sufficient number of members of both sides on board to launch successfully.en_US
dc.description.sponsorshipViacom Inc.en_US
dc.language.isoen_US
dc.publisherWalter de Gruyteren_US
dc.relation.isversionofhttp://dx.doi.org/10.2202/1446-9022.1256en_US
dc.rightsCreative Commons Attribution-Noncommercial-Share Alike 3.0en_US
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/3.0/en_US
dc.sourceSSRNen_US
dc.titleFailure to Launch: Critical Mass in Platform Businessesen_US
dc.typeArticleen_US
dc.identifier.citationEvans, David S., and Richard Schmalensee. “Failure to Launch: Critical Mass in Platform Businesses.” Review of Network Economics 9.4 (2010): . Web.en_US
dc.contributor.departmentSloan School of Managementen_US
dc.contributor.mitauthorSchmalensee, Richard
dc.relation.journalReview of Network Economicsen_US
dc.eprint.versionAuthor's final manuscripten_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dspace.orderedauthorsEvans, David S.; Schmalensee, Richarden
dc.identifier.orcidhttps://orcid.org/0000-0001-6351-2300
mit.licenseOPEN_ACCESS_POLICYen_US


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