Platform Papers

Platform Papers is a newsletter centered on scrutinizing platforms and big tech through academic research. It delves into platform competition, governance, the economic impacts of digital market legislation, and the strategies of both incumbents and new entrants across various sectors including healthcare, education, and entertainment.

Platform Competition Digital Market Regulations Decentralized Platforms and Web3 Big Tech in Regulated Industries Platform Strategy and Governance Antitrust and Big Tech Network Effects Platform-Dependent Entrepreneurship Freemium Models Platform Envelopment and Integration Content Strategy on Platforms Privacy and Targeted Advertising Globalization of Digital Platforms

The hottest Substack posts of Platform Papers

And their main takeaways

6 March is DMA-Day

59 implied HN points • 05 Mar 24
🕹 Technology Regulation Big Tech Compliance Market Impact Digital Platforms
  1. The Digital Markets Act (DMA) will enforce new rules on major digital platforms starting March 6, 2024, aiming to make markets fairer and more contestable for platforms like Apple, Google, Meta, TikTok, Amazon, and others.
  2. The DMA introduces obligations for gatekeepers to open up ecosystems, ensure fairness for business users, and promote transparency by submitting compliance plans publicly.
  3. The enforcement of DMA rules faces challenges from wealthy companies like Apple resisting compliance and the European Commission needing to balance limited resources with rigorous enforcement, highlighting the need for immediate action and collaboration with national agencies.

Platform Papers 2023 Year in Review

139 implied HN points • 19 Dec 23
💼 Business Research Marketing Economics Management
  1. 2023 had a record number of articles on platform competition research, with a 16% increase from the previous year.
  2. Marketing articles in platform competition research saw significant growth, accounting for 27% of published articles in 2023.
  3. The main themes in platform competition research covered network effects, platform pricing, winner-takes-all dynamics, and ecosystem governance, highlighting the impact of platforms on their ecosystems.

Smaller Slices of a Growing Pie

19 implied HN points • 28 Mar 24
💼 Business Competition Regulation Antitrust Consumer behavior
  1. Platform markets are becoming increasingly dominant in various sectors of the economy, presenting challenges and opportunities for both sellers and consumers.
  2. In platform markets, the entry of more sellers can have mixed effects - while it can lead to more transactions, it also means a smaller share of the 'pie' for each seller.
  3. High-quality businesses in platform markets tend to benefit more from platform expansion, as they can attract and retain customers, leading to better overall platform quality and increased competition for businesses to invest in quality.

Effects of Banning Targeted Advertising

2 HN points • 30 Apr 24
🕹 Technology Advertising Privacy Innovation Policy Data
  1. Banning targeted advertising may harm consumers by potentially leading to higher prices, reduced innovation, and less favorable outcomes for developers.
  2. Google's ban on targeted advertising in children's games resulted in a notable decrease in app innovation, showcasing the negative impacts of such regulations on developers.
  3. The dilemma lies in balancing user privacy concerns with the need for targeted advertising to maintain app diversity and innovation on digital platforms.

Winner takes all? Blockbusters’ effect on competition in platforms

39 implied HN points • 14 Feb 24
💼 Business Competition Platforms Crowdfunding Digital Strategy
  1. Digital platforms have to decide between focusing on blockbusters or long-tail content strategics based on their benefits. Blockbusters can drive significant traffic and users but may also intensify competition by monopolizing user attention.
  2. On crowdfunding platforms, blockbusters can have positive spillover effects by attracting attention and increasing funding for other projects. Related blockbusters have a stronger effect on a project than unrelated ones.
  3. For platforms or businesses, promoting blockbusters strategically can lead to increased user participation, spillover benefits, and competitive advantages. Leveraging blockbusters can drive growth and attract new users to a platform.
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The Power of Generativity in Platform Systems

39 implied HN points • 30 Jan 24
💼 Business Innovation Ecosystems Platforms Leadership Regulation
  1. In platform ecosystems, generativity plays a crucial role in driving innovation by allowing third-party developers to continuously create new offerings that enhance the core product's value over time.
  2. Balancing generativity is essential for platform success; too much generativity can lead to free-riding behavior where developers exploit the efforts of others, while the right amount can signal growth opportunities and encourage high-quality contributions.
  3. As platform ecosystems mature, business leaders and policymakers must navigate the challenges of maintaining a balance between positive reputation spillover effects and negative free-rider effects to ensure sustained innovation and user satisfaction.

Decentralized Platforms and Web3

79 implied HN points • 14 Jun 23
🕹 Technology Blockchain Web3 Decentralization Cryptocurrencies Digital Platforms
  1. Decentralized platforms operate without traditional managers by relying on decentralized algorithmic, social, and goal coordination mechanisms.
  2. Web3, as a new internet interaction model, allows users to own and exchange data without relying on central corporations.
  3. Decentralized platforms, like cryptocurrencies and DAOs, introduce a new class of digital economy competitors that require attention from industry, academia, and regulators.

Unlocking the Power of Freemium

19 implied HN points • 08 Nov 23
💼 Business Marketing Economics Technology Research Strategy
  1. Freemium apps can boost sales of their paid versions by providing a sample for users to try before committing to a purchase.
  2. The availability of a free version can improve the discoverability of a paid app, especially in categories with a smaller number of apps.
  3. When designing freemium apps, developers should carefully balance free and premium features to ensure there is a significant difference to motivate users to upgrade.

Vertical Integration of Platforms and Product Prominence in Online Hotel Booking

79 implied HN points • 12 Jan 23
💼 Business Platforms Recommendations Digital economy Regulations
  1. Digital platforms can influence consumer choices by steering them towards certain products and suppliers. This can raise concerns about biased recommendations and the impact on consumer interests.
  2. Regulations like the European Digital Markets Act aim to restrict the power of large online platforms, particularly concerning practices like self-preferencing.
  3. Studies suggest that vertically integrated meta-search platforms may prioritize affiliated sales channels, potentially affecting search quality and competition. Empirical analyses highlight the need for better data to understand these dynamics.

Debunking the Myth of Network Effects

19 implied HN points • 13 Sep 23
💼 Business Technology Competition Monopoly Antitrust Strategy
  1. Network effects can be powerful in digital platforms but may not always lead to the expected outcomes. A merger between pet-sitting platforms revealed that horizontal preferences and platform differentiation can play a significant role in user behavior.
  2. The strength of network effects can be challenging to quantify due to external factors influencing participant value. Understanding factors like switching costs and repeat exchanges is crucial in assessing the true impact of network effects.
  3. Having multiple competing platforms can be more beneficial than having a single dominant one. This diversity can foster healthy competition, innovation, and prevent monopolistic practices, highlighting the importance of antitrust regulations.

Platform Papers 2022 Year in Review

59 implied HN points • 29 Dec 22
🕹 Technology Research Academic Platforms Competition Regulation
  1. In 2022, there was a record number of academic papers published on platform competition, with a significant increase in marketing-related research.
  2. The research themes in platform competition covered ecosystem governance, network effects, heterogeneity within platforms, and corporate scope.
  3. Academic articles highlighted topics such as differential revenue sharing, collective governance, positive demand spillover, local network effects, and decentralized platform governance.

Crowdsourced Content and Platforms’ Competitive Advantage

19 implied HN points • 04 Jul 23
💼 Business Platform Competitive advantage Online Communities Strategies
  1. Crowdsourced content can be of high quality and variety, offering platforms a low-cost resource.
  2. Leveraging 'the crowd' for competitive advantage is challenging due to the need for platform management and direction.
  3. Platform competition and contributor activity intertwine, with success, community size, social benefits, and high-productivity contributors being key factors for a platform's competitive advantage.

Big Tech Platforms’ Entry into Healthcare and Education

59 implied HN points • 13 Jul 22
🕹 Technology Big Tech Data Analytics Regulations Data Privacy Healthcare
  1. Big Tech platforms like Google and Apple enter regulated industries like healthcare and education by capturing sensitive data, leading to concerns about privacy and competition.
  2. In highly regulated industries, Big Tech firms focus on data capture and analysis, offering insights that can significantly impact incumbent service providers and drive innovation.
  3. For platform strategy, success in regulated industries hinges on superior data analytics capabilities, strategies to access and use sensitive data, and balancing stakeholder interests like privacy and security.

Antitrust Intervention in Big Tech

19 implied HN points • 11 Apr 23
💼 Business Tech Antitrust Innovation Competition Regulation
  1. Antitrust regulators worldwide are trying new legislation to prevent large platforms from abusing their market power.
  2. Past antitrust interventions, like the case of Microsoft, show that curbing dominant platforms can lead to increased innovation but decreased profits for complementor firms.
  3. It's crucial for both complementors and platforms to be aware of the risks of over-dependence and to find a balance that encourages innovation while ensuring profitability in the long term.

Promoting Platform Takeoff and Self-Fulfilling Expectations

19 implied HN points • 15 Mar 23
💼 Business Marketing Promotion Entrepreneurship Research Platforms
  1. Successful launch of new platform ventures is crucial for expansion and innovation in online platforms.
  2. In platform industries, marketing involves more than just creating awareness; it's about coordinating market actors to shift from one equilibrium to another.
  3. Promoting new platforms should focus on creating expectations of a large future user base rather than revealing small current user numbers.

Five Platform Competition Trends to Watch in 2022

59 implied HN points • 24 Jan 22
🕹 Technology Platforms Regulation Curation Cryptocurrency Blockchain
  1. The platform economy is dominated by big players like Amazon and Apple, but they face increasing scrutiny for their dominance from antitrust agencies. Self-regulation could be an alternative to government intervention.
  2. Platforms are not just marketplaces; they play a significant role in curating products. They promote certain products strategically to shape their ecosystems and drive revenue.
  3. Complementors, who rely on platforms like Apple App developers, are starting to push back against platform dominance. Strategies like disintermediation and building competing platforms are being employed to reduce dependence on major platforms.

Platform Governance Matters: How Platform Gatekeeping Affects Knowledge Sharing Among Complementors

19 implied HN points • 15 Feb 23
💼 Business Technology Innovation Governance Platform Management
  1. Strong platform control can encourage complementors' innovation activity instead of suppressing it.
  2. Access control by platform owners shapes complementors' knowledge sharing activities and can impact innovation.
  3. Platform governance, particularly access control, plays a crucial role in motivating cooperative behaviors among complementors for innovation.

The Platformization of Brands

19 implied HN points • 09 Nov 22
💼 Business Brands Platforms Value Creation
  1. Brands are facing challenges in maintaining direct contact with consumers in the current platform era dominated by intermediaries like Amazon and Alibaba.
  2. To combat this, brands are creating their own platform offerings to establish intimate relationships with consumers and address their various needs associated with the core product.
  3. Managers transitioning to a flagship platform model must carefully plan their vision, strategic goals, and value creation processes to meet the diverse needs of consumers while relinquishing control in certain areas.

Platform Envelopment and Network Effects

19 implied HN points • 12 Oct 22
🕹 Technology Platforms Network Effects Market Competition
  1. Absorbing functionality from another platform can help solve the 'chicken-and-egg' problem in platform markets.
  2. Platform envelopment can make a platform more attractive to consumers by combining core functionalities from different platforms.
  3. Envelopment strategy can decrease a platform's reliance on available software while increasing its standalone value, providing a competitive edge against platforms with larger networks.

When Freemium Succeeds

19 implied HN points • 15 Sep 22
💼 Business Digital Products Product Design Market Strategies
  1. Freemium products can fail to attract users and revenue, but when they succeed, they can become superstars with high engagement and in-app purchases.
  2. Incorporating social features into freemium products can be a double-edged sword, as they enhance value with a large user base but may backfire with smaller user bases.
  3. The success of freemium products with social features is heavily influenced by the size of the platform's installed user base, impacting demand potential and user engagement.

Platform Dependent Entrepreneurship: Navigating Precarity

19 implied HN points • 13 Apr 22
💼 Business Entrepreneurship Platforms Regulation Power Dynamics
  1. Platform-based entrepreneurship faces power imbalances and uncertainties inherent in platform economies, affecting complementors' risks and strategies.
  2. Entrepreneurs in platform markets must acknowledge the significant influence platforms hold over their businesses, leading to a high level of dependence.
  3. Multi-homing strategies, collective action, and engagement with regulatory bodies are crucial responses for platform-dependent ventures to mitigate risks and maintain agency.

Catching Fyre: Platform Diffusion and the Technology Strategy Toolkit

19 implied HN points • 16 Feb 22
🕹 Technology Platforms Adoption Innovation Networking
  1. Hackathons can help introduce new platform technologies by bringing developers together to collaborate and learn, ultimately boosting platform adoption.
  2. Temporary gatherings like hackathons provide a catalyst for technology platform companies to create positive buzz, align expectations, and accelerate platform growth through social learning and social coordination.
  3. Sponsoring temporary gatherings can be a strategic way for firms launching new platforms to attract initial users and complementors, but it's important to manage the sentiment that emerges from such events.

Trust and Platform Disintermediation

0 implied HN points • 16 Aug 22
💼 Business Trust Building
  1. Disintermediation can be a significant challenge for platforms that earn revenue from matching or facilitating transactions, as users may prefer to connect directly once trust is established.
  2. Building trust on platforms is crucial for growth, but platforms need to implement strategies to counteract increased disintermediation that may occur as trust develops.
  3. Platform managers can use various strategies like enhancing trust and safety measures, capturing value pre-transaction, and diversifying revenue streams to prevent disintermediation while fostering trust and growth.

Platform Governance and the Rural-Urban Divide

0 implied HN points • 15 Jun 22
🕹 Technology Digital Platforms E-commerce
  1. Rural entrepreneurs struggle more with algorithmic changes on digital platforms, affecting platform governance
  2. Offline factors like local economic and social conditions impact how entrepreneurs navigate online business environments
  3. Clear communication and access to high-quality information sources are crucial for rural entrepreneurs' success on digital platforms

Platform Power and Platform Bias in the Music Industry

0 implied HN points • 16 Mar 22
🎶 Music Digital Platforms Playlists Music Industry Influence Bias
  1. Large digital platforms like Spotify can influence the success of songs and artists by controlling playlists and exposure.
  2. Appearing on Spotify's popular playlists can lead to significant increases in streams and commercial success for artists.
  3. While Spotify has the power to impact success, there are indications of bias favoring independent-label music and music by women, raising questions about fair treatment in the music industry.

Coming soon

0 implied HN points • 03 Dec 21
🕹 Technology Platforms Big Tech Research
  1. Platform Papers is a newsletter focused on the latest research about platforms and big tech
  2. The newsletter is coming soon, with updates anticipated
  3. Readers can subscribe through the provided link to stay updated

Platforms Going Global

0 implied HN points • 12 May 22
💼 Business Technology Research Global Markets Ecosystems
  1. The success of platforms in international markets depends on network effects, which might not always extend cross borders due to local preferences and complementors.
  2. Platforms differ from traditional multinationals in governance strategies, as they rely on loosely coupled networks of complementors who need autonomy and control to create value.
  3. Platform expansion into new countries faces challenges in transferring ecosystem-specific advantages, leading to a need for novel research perspectives and considerations on regulation and strategy.

Jump-Starting Network Effects

0 implied HN points • 15 Aug 23
💼 Business Competition Market Dynamics
  1. Superstars, like top artists or developers, have a significant impact on attracting consumers to platforms like music streaming services or app stores.
  2. Offering exclusivity to superstars can give platforms a competitive edge by attracting more consumers and complementors, enhancing the network effect.
  3. When platforms acquire superstars, the decision to withhold or license content to rivals affects market competitiveness and may impact exclusivity strategies.

Coming soon...

0 implied HN points • 30 Dec 21
🕹 Technology Research Digital Platforms Big Tech Academic
  1. Platformpapers will start publishing monthly blog posts in 2022 covering the latest academic research on digital platforms and big tech
  2. The posts will summarize and contextualize articles from the platform papers references database to make the research more accessible to a wider audience
  3. The goal is to engage individuals interested in platforms such as scholars, students, managers, creators, and policy makers