Platform competition with Shiva Shekhar

17/01/2024 52 min
Platform competition with Shiva Shekhar

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Episode Synopsis

In most platform environments, the exclusive provision of premium content from leading creators (superstars) is used as a strategy to boost user participation and secure a competitive edge vis-à-vis rivals. In this article, we study the impact of superstar exclusive content provision on platform competition and complementors’ homing decisions. Two competing platforms facilitate interactions between consumers and suppliers, of which the latter are identified by the superstar and a fringe of complementors (e.g., independent developers, amateurs). When platform competition is intense, more consumers become affiliated with the platform favored by superstar exclusivity. This mechanism is self-reinforcing as it generates an entry cascade of complementors, and some complementors single home on the favored platform.