Podcast
Questions and Answers
What is the definition of a process innovation?
What is the definition of a process innovation?
- Introduction of a new product with improved characteristics
- Establishment of a dominant design or standard
- Reduction of uncertainty in the mature phase
- Introduction of a new or significantly improved production or delivery method (correct)
In which phase of the competitive lifecycle do we see growth and adoption, leading to a shakeout where firms die off?
In which phase of the competitive lifecycle do we see growth and adoption, leading to a shakeout where firms die off?
- Annealing Phase
- Growth Phase (correct)
- Mature Phase
- Emergent Phase
What is the annealing point in the competitive lifecycle?
What is the annealing point in the competitive lifecycle?
- The phase with a lower amount of firms
- The point at which the dominant design or standard is established (correct)
- The implementation of a new or significantly improved production method
- The phase where growth and adoption occur
What was the impact of the invention/adoption of high-speed internet on Disney?
What was the impact of the invention/adoption of high-speed internet on Disney?
What was the impact of the invention of the Internet on the threat of substitutes?
What was the impact of the invention of the Internet on the threat of substitutes?
What was the impact of Ryanair deregulation on the European airline industry?
What was the impact of Ryanair deregulation on the European airline industry?
According to Schumpeter, what is the essential fact about capitalism?
According to Schumpeter, what is the essential fact about capitalism?
What leads to Disequilibrium according to the Schumpeterian perspective?
What leads to Disequilibrium according to the Schumpeterian perspective?
What are the two components of Equilibrium that contribute to Economic Profits (rents) according to Schumpeterian theory?
What are the two components of Equilibrium that contribute to Economic Profits (rents) according to Schumpeterian theory?
What can Schumpeterian rents take the form of?
What can Schumpeterian rents take the form of?
According to the Schumpeterian perspective, what do markets primarily exhibit?
According to the Schumpeterian perspective, what do markets primarily exhibit?
What is the crux of the Schumpeterian Perspective?
What is the crux of the Schumpeterian Perspective?
What characterizes the Emergent Phase of the competitive lifecycle?
What characterizes the Emergent Phase of the competitive lifecycle?
What does the Shakeout phase of the competitive lifecycle involve?
What does the Shakeout phase of the competitive lifecycle involve?
What is the primary focus of the Mature Phase of the competitive lifecycle?
What is the primary focus of the Mature Phase of the competitive lifecycle?
What is the Technology S-Curve used to illustrate?
What is the Technology S-Curve used to illustrate?
What does process innovation involve in the context of the competitive lifecycle?
What does process innovation involve in the context of the competitive lifecycle?
What marks the point at which the dominant design or standard is established in the competitive lifecycle?
What marks the point at which the dominant design or standard is established in the competitive lifecycle?
Which type of platforms enable interactions between distinct groups?
Which type of platforms enable interactions between distinct groups?
What are complements in the context of goods?
What are complements in the context of goods?
What leads to second-mover advantage?
What leads to second-mover advantage?
When do network effects exist?
When do network effects exist?
What do intermediaries do in a platform context?
What do intermediaries do in a platform context?
What do positive network effects lead to?
What do positive network effects lead to?
What are the solutions to the chicken and egg problem?
What are the solutions to the chicken and egg problem?
What is the primary focus of the Schumpeterian perspective?
What is the primary focus of the Schumpeterian perspective?
What are the components of Platform Affiliation?
What are the components of Platform Affiliation?
What did Uber do differently in comparison to Sidecar?
What did Uber do differently in comparison to Sidecar?
What costs matter the most in multi-homing?
What costs matter the most in multi-homing?
How should platforms price each side?
How should platforms price each side?
What are multi-homing costs?
What are multi-homing costs?
What is the Chicken and the Egg problem in the context of platform development?
What is the Chicken and the Egg problem in the context of platform development?
What are the solutions to the Chicken and Egg Problem?
What are the solutions to the Chicken and Egg Problem?
According to the text, how should platforms price each side?
According to the text, how should platforms price each side?
What did Uber do differently compared to Sidecar?
What did Uber do differently compared to Sidecar?
What is the Schumpeterian perspective on markets?
What is the Schumpeterian perspective on markets?
Study Notes
Platform Fundamentals and Network Effects
- Complements are goods that enhance the value of another with negative cross price elasticity.
- Demand uncertainty leads to second-mover advantage.
- Platforms enable interactions between users with network effects.
- Physical platforms include financial services and transportation.
- Intermediaries buy from suppliers and resell to buyers.
- Platforms disintermediate and give control over product quality, pricing, etc. to participants.
- One-sided platforms enable interactions among a single group, while multi-sided platforms enable interactions between distinct groups.
- Network effects exist when the willingness to pay or affiliate depends on the number of other users of the same product.
- Network effects are demand-side economies of scale that increase value creation.
- Positive network effects increase willingness to pay as the number of users increases.
- Direct and indirect network effects can be positive or negative.
- Transaction platforms enable direct exchange, while innovation platforms facilitate the development of complementary products.
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Description
Test your understanding of platform fundamentals and network effects with this quiz. Explore concepts such as complements, demand uncertainty, one-sided and multi-sided platforms, network effects, and the role of platforms in enabling interactions and value creation.
