Platform Pricing in the Presence of Cross-platform Network Effects
Bibliographic record
Abstract
As platform businesses are booming, different platforms are connected through multi-homing users.Thus, cross-platform network effects arise and have become a strategic concern among business practitioners.However, extant literature has largely ignored cross-platform network effects.We use a stylized model to examine the network effects through the feedback loop and the impact of cross-platform network effects on platform pricing through two levels of impact: the number of multi-homing users and service complementarity.We find that platforms charge less on both sides in the presence of cross-platform network effects when they are separately owned.Moreover, platforms charge even lower prices on both sides when services are complementary.An important caveat is that platforms are willing to sacrifice prices to attract more users when cross-platform network effects are present.We also extend our model to analyze the impact of cross-platform network effects on platform pricing when two platforms are integrated.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.003 | 0.015 |
| Meta-epidemiology (narrow) | 0.001 | 0.001 |
| Meta-epidemiology (broad) | 0.001 | 0.001 |
| Bibliometrics | 0.001 | 0.001 |
| Science and technology studies | 0.001 | 0.002 |
| Scholarly communication | 0.006 | 0.010 |
| Open science | 0.002 | 0.003 |
| Research integrity | 0.003 | 0.004 |
| Insufficient payload (model declined to judge) | 0.020 | 0.001 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".