Should I stay or should I go? Migrating away from an incumbent platform
File(s)
Accepted version
Author(s)
Biglaiser, Gary
Cremer, Jacques
Veiga, Andre Filipe
Type
Journal Article
Abstract
We study incumbency advantage in markets with positive consumption externalities. Users of an incumbent platform receive stochastic opportunities to migrate to an entrant and can either accept
them or wait for a future opportunity. In some circumstances, users
have incentives to delay migration until others have migrated. If they
all do so, no migration takes place, even when migration would have
been Pareto-superior. We use our framework to identify environments
where incumbency advantage is larger. A key result is that having
more migration opportunities actually increases incumbency advantage.
them or wait for a future opportunity. In some circumstances, users
have incentives to delay migration until others have migrated. If they
all do so, no migration takes place, even when migration would have
been Pareto-superior. We use our framework to identify environments
where incumbency advantage is larger. A key result is that having
more migration opportunities actually increases incumbency advantage.
Date Issued
2022-10-01
Date Acceptance
2021-12-03
Citation
RAND Journal of Economics, 2022, 53 (3), pp.453-483
ISSN
0741-6261
Publisher
Wiley
Start Page
453
End Page
483
Journal / Book Title
RAND Journal of Economics
Volume
53
Issue
3
Copyright Statement
© 2022, The RAND Corporation. This is the accepted version of the following article: Biglaiser, G., Crémer, J. and Veiga, A. (2022), Should I stay or should I go? Migrating away from an incumbent platform. The RAND Journal of Economics, which has been published in final form at https://doi.org/10.1111/1756-2171.12418
Identifier
https://onlinelibrary.wiley.com/doi/full/10.1111/1756-2171.12418
Subjects
Economics
14 Economics
Publication Status
Published
Date Publish Online
2022-08-02