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- W3046200094 abstract "First-party complements, complements provided by the platform owner itself, are an important tool for managing the complementor space in two-sided markets. Nonetheless, there is little research about the strategies underlying the introduction of first-party complements. While third-party complementors introduce their complements with the sole intention of maximizing profits from its sales, platform owners also consider the overall performance of the ecosystem. This is particularly important in the early stage of the platform’s lifecycle, when it faces the chicken-and-egg problem. We thus investigate at which stage of the platform’s lifecycle and into which market segment platform owners introduce their complements. Drawing on data of the video game industry between 1992 and 2008, we find that compared to third-party complementors platform owners introduce their complements earlier in the lifecycle. Platform owners also tend to introduce complements into less developed market segments, particularly in the early stage and when the platform is strong vis-à-vis its competitors. Our study highlights the importance of platform lifecycle and competitive situation for the platform owner’s decision between competing with its complementors and growing the platform ecosystem as a whole." @default.
- W3046200094 created "2020-08-03" @default.
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- W3046200094 date "2020-08-01" @default.
- W3046200094 modified "2023-09-24" @default.
- W3046200094 title "First-Party Complements in Platform Markets: A Dynamic Perspective" @default.
- W3046200094 doi "https://doi.org/10.5465/ambpp.2020.17028abstract" @default.
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