Market-expanding or Market-stealing? Competition with network effects in bike-sharing

• 成果类型: Article
• 署名作者: Cao, Guangyu; Jin, Ginger Zhe; Weng, Xi; Zhou, Li-An
• 署名单位: Peking University; University System of Maryland; University of Maryland College Park; National Bureau of Economic Research
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12391
• 发表日期: 2021
• 页码: 778-814
• 关键词: externalities; entry; transportation; technologies; frictions; adoption; search

摘要

Using staggered entry of two dockless bike-sharing firms, we study whether the entrant expands or steals the market from the incumbent in 59 cities. Compared with 23 cities without entry, the entry helps the incumbent to serve more trips, make more bike investment, achieve higher revenue per trip, improve bike utilization, and form a wider and more dispersed network. The market-expanding effect on new users dominates a significant market-stealing effect on old users. These findings, plus a theory that highlights consumer search and network effects, suggest that a market with positive network effects and multihoming users is not necessarily winner-takes-all.