Should I stay or should I go? Migrating away from an incumbent platform

• 成果类型: Article
• 署名作者: Biglaiser, Gary; Cremer, Jacques; Veiga, Andre
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics; Imperial College London
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12418
• 发表日期: 2022
• 页码: 453-483
• 关键词: compatibility; COMPETITION

摘要

We study incumbency advantage in markets with positive consumption externalities. Users of an incumbent platform receive stochastic opportunities to migrate to an entrant and can either accept them or wait for a future opportunity. In some circumstances, users have incentives to delay migration until others have migrated. If they all do so, no migration takes place, even when migration would have been Pareto-superior. We use our framework to identify environments where incumbency advantage is larger. A key result is that having more migration opportunities actually increases incumbency advantage.