Defines a platform-mediated networks, and introduces the concepts central to their study. First, it defines the network and network effects, explains how network effects affect user willingness to pay for access to the network, describes the factors that determine the strength of the network effect, discusses how the success of the network may depend on user expectations about its growth prospects, defines the external network and their significance; systematics networks is based on the number of different user groups - parties - what they cover, and explains why the network effects should be considered as related demand, not supply-related economies of scale. Second, it defines the platforms describes the various roles played by companies in the creation and maintenance of the platform is discussed platform boundaries, for example, the difference between platform providers and users, and the schemes for classifying platforms based on their core functions, structure of the networks they serve, and who controls them. "Hide
by Thomas R. Eisenmann Source: Harvard Business School 34 pages. Publication Date: September 13, 2006. Prod. #: 807049-PDF-ENG
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