Dynamic Innovation in a Two-Sided Platform

• Main Authors: LIN, Mei, LI, Shaojin, WHINSTON, Andrew
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Markov equilibrium; consumer welfare; dynamic innovation; firm pricing strategy; incentive modeling; platform fee; price competition; two-sided market; Computer Sciences; E-Commerce
• Online Access: https://ink.library.smu.edu.sg/sis_research/1719; http://doi.ieeecomputersociety.org/10.1109/HICSS.2011.173
• Institution: Singapore Management University

We are interested in a two-sided platform, in which dynamic innovation plays a role in stimulating consumer demand that also drives firms' incentive to innovate. By explicitly modeling the price competition within the two-sided market, we study ways consumers' platform fee interacts with f...