Questions and Answers
What is the Chicken and the Egg problem in the context of platform development?
The problem of getting a platform started when both sides depend on one another.
What are the solutions to the Chicken and the Egg problem?
Subsidizing, exclusivity, seeding, providing cheap/free tools, and offering standalone value to one side.
What is the problem with solutions to the Chicken and the Egg problems?
Both subsidizing and exclusivity can be expensive.
How should platforms price each side?
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What did Uber do differently compared to Sidecar?
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When starting a platform, firms should always begin with as many sides as possible to maximize the network effects. Is this statement true or false?
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What are the pros of having more sides in a platform?
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What are the cons of having more sides in a platform?
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What costs matter the most in switching when considering platform development?
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How many sides should firms bring on board when starting a platform to maximize network effects?
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What is the primary factor that leads to a more concentrated platform industry?
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What characterizes heterogeneous consumer preferences?
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What are multi-homing costs?
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What does mono-homing refer to?
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What happens when multi-homing costs are high?
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What are the components of Platform Affiliation?
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What costs matter the most in multi-homing?
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What characterizes the side of the market in terms of multi-homing?
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What is multi-homing?
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What are the four quadrants of customer preferences based on?
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