Dilemmas of Platform Startups
نویسنده
چکیده
This paper explores the strategic problems of platform startups on the Internet: their identification and discovery of linkages between them form its contribution to the platform literature. The author argues that the chicken-and-egg problem cannot be solved solely with pricing in the online context – in fact, setting the price zero will result in a monetization dilemma, whereas drawing users from dominant platforms sets the startup vulnerable to their strategic behavior, a condition termed remora’s curse. To correctly approach strategic problems in the platform business, startup entrepreneurs should consider them holistically, carefully examining the linkages between strategic dilemmas and their solutions.
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