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Article Dans Une Revue RAND Journal of Economics Année : 2022

Should I stay or should I go? Migrating away from an incumbent platform

Résumé

We study incumbency advantage in markets with positive consumption externalities. Users of an incumbent platform receive sto- chastic 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.
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Dates et versions

hal-03792918 , version 1 (30-09-2022)

Identifiants

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Jacques Crémer, Gary Biglaiser, André Veiga. Should I stay or should I go? Migrating away from an incumbent platform. RAND Journal of Economics, 2022, 53 (3), pp.453-483. ⟨10.1111/1756-2171.12418⟩. ⟨hal-03792918⟩
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