Korean Management Science Review (경영과학)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Service Characteristics Leading to "Winner-takes-all" Phenomenon in Platform Business

플랫폼 비즈니스에서의 승자독식 현상에 영향을 미치는 서비스 특성

  • Received : 2016.02.21
  • Accepted : 2016.12.13
  • Published : 2016.12.31
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Abstract

The market of platform business is typically served by a few dominant players, presenting "winner-takes-all" phenomenon. This study aims to find service characteristics leading to the phenomenon. Six different service-characteristics were considered : Same-side network effect, cross-side network effects, entry barrier, multi-homing cost, switching cost, and heterogeneity of preference. To assess the degree of concentration of market share, HHI (Herfindahl-Hirschman Index) is calculated for top three major players. Based on the HHI value, 10 most eminent platform businesses are classified into three different segments and each segment is characterized with key factors. The results from this study provide some insight into the strategic management of platform business.

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References

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