Question: Which one is not true about two-sided markets? Network effects become significant after a certain subscription percentage has been achieved, called critical mass. In traditional
Which one is not true about two-sided markets?
Network effects become significant after a certain subscription percentage has been achieved, called critical mass.
In traditional businesses, growth beyond some point usually leads to diminishing returns. However, in the digital age, successful platforms enjoy increasing returns to scale.
Just like in the traditional value chain, to the left of the company is cost and to the right is revenue in two-sided networks.
Economic platforms have two distinct user groups that provide each other with network benefits.
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