Cross-platform Network Effects and Platform Pricing
Ruhai Wu, McMaster University
In the digital era, platform businesses thrive and cross-platform network effects have become a strategic concern for practitioners as different platforms are connected through multi-homing users. However, most platform business studies overlook cross-platform network effects. Using a stylized model, we explore the formation of cross-platform network effects through feedback loops and quantify their multiplying outcome. Our study further examines platforms' pricing decisions with cross-platform network effects. We find that when two platforms are connected through multi-homing users, platforms charge less on the side with multi-homing users, while prices on the other side may increase or decrease depending on the synergies that multi-homing users receive from using both platforms. Additionally, we extend our model to analyze the impact of cross-platform network effects on platform pricing in other applications.
Ruhai Wu（吴如海）教授，本科与硕士就读于清华大学金融专业，博士毕业于德州大学(University of Texas at Austin) 经济学专业。目前是加拿大麦克马斯特大学德格罗特商学院市场营销系的终身教授。吴教授在管理领域顶级期刊(如Journal of Marketing, Journal of Retailing, Decision Support Systems等)发表过多篇论文。吴教授曾担任Decision Support Systems的副主编，并长期担任诸多知名期刊（如Production and Operations Management, European Journal of Operation Research, Information Systems Research, Decision Support Systems, Electronic Commerce Research and Applications等）的审稿人。吴教授的研究方向集中于供应链管理、渠道管理、定价策略、广告与营销、电子商务商业模式等领域。