Battle of Platforms: Unlocking Profitability in Multi-Sided Software Platform Business Models

Software platforms have become central to the digital economy,reshaping industries and accelerating growth far beyond traditionalbusiness models. Their success stems from multi-sided ecosystemsthat integrate consumers and complementors, leverage strongnetwork effects, and enable rapid scale with limited resources.This book presents a market model for profit-maximizing pricingstrategies in software platform markets, focusing on the interactionsbetween consumers, complementors, and platform owners. Theanalysis shows that variable, transaction-based fees are optimalonce complementor participation exceeds 50 %, and that sustainableoligopolies depend on stable participation equilibria across marketsides. When multiple equilibria exist, markets tend to tip towardmonopoly as one platform attracts most single-homing consumers.Building on these insights, the book offers strategic guidance forincumbents and entrants based on complementor heterogeneity andconsumer benefits.Applying the model to the mobile app market illustrates its practicalrelevance, showing that real-world two-platform competition oftenconverges to a single stable equilibrium-challenging earlierpredictions from one-platform frameworks.

Pagina's: 506, Editie: Eerste editie, Hardcover, Cuvillier Verlag