{"id":1246,"date":"2019-10-04T15:27:12","date_gmt":"2019-10-04T19:27:12","guid":{"rendered":"http:\/\/community.mis.temple.edu\/seminars\/?p=1246"},"modified":"2019-10-25T15:10:53","modified_gmt":"2019-10-25T19:10:53","slug":"d-j-wu","status":"publish","type":"post","link":"https:\/\/community.mis.temple.edu\/seminars\/d-j-wu\/","title":{"rendered":"Oct 11 &#8211; D.J. Wu to present &#8220;Platform Competition under Network Effects: Piggybacking and Optimal Subsidization&#8221;"},"content":{"rendered":"<h2 style=\"text-align: center\"><strong>Platform Competition under Network Effects: Piggybacking and Optimal Subsidization<\/strong><\/h2>\n<p style=\"text-align: center\">by<\/p>\n<p><a href=\"https:\/\/www.scheller.gatech.edu\/pix\/directory\/wu_dj_profile.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.scheller.gatech.edu\/pix\/directory\/wu_dj_profile.jpg\" width=\"272\" height=\"272\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center\"><strong><a href=\"https:\/\/www.scheller.gatech.edu\/directory\/faculty\/wu\/index.html\">D. J. Wu<\/a><\/strong><\/h2>\n<p style=\"text-align: center\">Ernest Scheller Jr. Chair in Innovation, Entrepreneurship and Commercialization<br \/>\nProfessor, Area Coordinator, Information Technology Management<br \/>\nGeorgia Institute of Technology<br \/>\nScheller College of Business<\/p>\n<h2 style=\"text-align: center\"><strong>Friday, October 11<\/strong><\/h2>\n<h2 style=\"text-align: center\"><strong>10:30 \u2013 12:00 pm | Speakman 200<\/strong><\/h2>\n<p style=\"text-align: center\"><strong>Abstact:<\/strong><\/p>\n<p style=\"text-align: center\">A repeated challenge in launching a two-sided market platform is how to solve the \u201cchicken-and-egg\u201d problem. The solution often suggested in the literature is subsidizing one side of the market to jumpstart adoption of the platform. In this paper, using a game-theoretic framework, we study piggybacking &#8212; importing users from external networks &#8212; as a new approach to launching platforms. Our finding suggests that optimal use of the piggybacking strategy depends on the cross-side network effects. First, benchmarked with the case of no piggybacking, we find that the pricing impacts of piggybacking is non-trivial. It may help mitigate or avoid price competition. Second, we show that platform duopoly with piggybacking can become a \u201cgame of chicken\u201d or even a prisoner\u2019s dilemma, which implies that platforms are not always better off (sometimes even worse off) with piggybacking. Finally, when piggybacking users are fabricated (e.g., zombies or fake users), the platform strategies differ greatly from the authentic piggybacking case. It also undermines both the competing platform\u2019s profit and the providers\u2019 surpluses. Managerial implications for platform practitioners are also discussed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Platform Competition under Network Effects: Piggybacking and Optimal Subsidization by &nbsp; D. J. Wu Ernest Scheller Jr. Chair in Innovation, Entrepreneurship and Commercialization Professor, Area Coordinator, Information Technology Management Georgia Institute of Technology Scheller College of Business Friday, October 11 10:30 \u2013 12:00 pm | Speakman 200 Abstact: A repeated challenge in launching a two-sided [&hellip;]<\/p>\n","protected":false},"author":17227,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[783282,783280,783281,72438],"class_list":{"0":"post-1246","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-uncategorized","7":"tag-external-networks","8":"tag-game-theoretic-framework","9":"tag-piggybacking","10":"tag-platform","11":"entry"},"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/posts\/1246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/users\/17227"}],"replies":[{"embeddable":true,"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/comments?post=1246"}],"version-history":[{"count":1,"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/posts\/1246\/revisions"}],"predecessor-version":[{"id":1247,"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/posts\/1246\/revisions\/1247"}],"wp:attachment":[{"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/media?parent=1246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/categories?post=1246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/community.mis.temple.edu\/seminars\/wp-json\/wp\/v2\/tags?post=1246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}