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The “Kill Zone”: When a Platform Copies to Eliminate a Potential Threat

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  • Massimo Motta
  • Sandro Shelegia

Abstract

A monopoly platform may prevent a startup which sells a complementary product from developing a competing platform by copying it. Imitation reduces the potential rival's profits from the new platform and thus its incentives to invest. The anticipation of the incumbent's aggressive behavior may also create an “ex ante” effect, by inducing the rival not to challenge the incumbent with a new platform (i.e., not to enter the “kill zone”) and to develop another (noncompeting) product instead. This finding is robust to several extensions.

Suggested Citation

  • Massimo Motta & Sandro Shelegia, 2025. "The “Kill Zone”: When a Platform Copies to Eliminate a Potential Threat," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 34(3), pages 657-673, August.
    • Handle: RePEc:bla:jemstr:v:34:y:2025:i:3:p:657-673
    DOI: 10.1111/jems.12614
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