Knife Edge or Plateau: When Do Market Models Tip?
نویسندگان
چکیده
منابع مشابه
Knife-edge or Plateau: When Do Market Models Tip
This paper studies whether agents must agglomerate at a single location in a class of models of two-sided interaction. In these models there is an increasing returns effect that favors agglomeration, but also a crowding or market-impact effect that makes agents prefer to be in a market with fewer agents of their own type. We show that such models do not tip in the way the term is commonly used....
متن کاملWhen Do Markets Tip? An Experimental Study
We report the results of laboratory experiments examining platform competition in two-sided markets. Owing to market size e¤ects that favor the platform with the larger customer base, there always exist equilibria in which all participants tip to one platform or the other. When market impact e¤ects are su¢ ciently large, then there also exist interior equilibria where both platforms enjoy...
متن کاملThe Constrainedness Knife-Edge
A general rule of thumb is to tackle the hardest part of a search problem first. Many heuristics therefore try to branch on the most constrained variable. To test their effectiveness at this, we measure the constrainedness of a problem during search. We run experiments in several different domains, using both random and non-random problems. In each case, we observe a constrainedness "knlfe-edge...
متن کاملWhen Do Markets Tip? A Cognitive Hierarchy Approach
The market structure of platform competition is critically important to managers and policy makers. While network effects in these markets predict concentrated industry structures, competitive effects and differentiation suggest the opposite. Standard theory offers little guidance– full rationality models have multiple equilibria with wildly varying market concentration. We relax full rationali...
متن کاملReflections on the Knife Edge
INTRODUCTION The accompanying article, written by John Murphy, a retired lawyer and lifelong outdoorsman from his beloved Colorado Rockies, draws the striking parallel between his experiences as a mountain climber and as a patient with metastatic melanoma facing the hope and uncertainty of experimental therapy. Both are life-threatening circumstances, demanding courage and hope, and challenging...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.380061