IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v31y2020i4d10.1007_s11002-020-09539-3.html
   My bibliography  Save this article

Platform data strategy

Author

Listed:
  • Hemant K. Bhargava

    (University of California Davis)

  • Olivier Rubel

    (University of California Davis)

  • Elizabeth J. Altman

    (University of Massachusetts Lowell)

  • Ramnik Arora

    (Facebook)

  • Jörn Boehnke

    (University of California Davis)

  • Kaitlin Daniels

    (Washington University in Saint Louis)

  • Timothy Derdenger

    (Carnegie Mellon University)

  • Bryan Kirschner

    (DataStax)

  • Darin LaFramboise

    (Auth0)

  • Pantelis Loupos

    (University of California Davis)

  • Geoffrey Parker

    (Dartmouth College)

  • Adithya Pattabhiramaiah

    (Georgia Tech)

Abstract

Platforms create value by enabling interactions between consumers and external producers through infrastructures and rules. We define platform data strategy to encompass all data-related rules undertaken by platforms to foster competitive advantage over the long term. Platform firms face growing pressure to increase accountability for how they use data; yet, an explicit treatment of platforms’ data strategies and a systematic discussion of forces influencing such data-related choices are absent in the academic literature. We articulate how a platform’s data strategy varies based on platform type and business circumstances. Given the interdependencies within a platform’s ecosystem, its data strategy must balance incentives of all stakeholders. Besides discussing these topics, the paper identifies promising research opportunities in platform data strategy to better inform future academic research, strategic decision-making, and regulatory analysis.

Suggested Citation

  • Hemant K. Bhargava & Olivier Rubel & Elizabeth J. Altman & Ramnik Arora & Jörn Boehnke & Kaitlin Daniels & Timothy Derdenger & Bryan Kirschner & Darin LaFramboise & Pantelis Loupos & Geoffrey Parker &, 2020. "Platform data strategy," Marketing Letters, Springer, vol. 31(4), pages 323-334, December.
    • Handle: RePEc:kap:mktlet:v:31:y:2020:i:4:d:10.1007_s11002-020-09539-3
    DOI: 10.1007/s11002-020-09539-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11002-020-09539-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-020-09539-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alessandro Acquisti & Curtis Taylor & Liad Wagman, 2016. "The Economics of Privacy," Journal of Economic Literature, American Economic Association, vol. 54(2), pages 442-492, June.
    2. Farrell, Joseph & Saloner, Garth, 1986. "Installed Base and Compatibility: Innovation, Product Preannouncements, and Predation," American Economic Review, American Economic Association, vol. 76(5), pages 940-955, December.
    3. Elizabeth J. Altman & Mary Tripsas, 2013. "Product to Platform Transitions: Organizational Identity Implications," Harvard Business School Working Papers 14-045, Harvard Business School, revised Sep 2014.
    4. Daron Acemoglu & Ali Makhdoumi & Azarakhsh Malekian & Asu Ozdaglar, 2022. "Too Much Data: Prices and Inefficiencies in Data Markets," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 218-256, November.
    5. Jentzsch, Nicola, 2016. "State-of-the-Art of the Economics of Cyber-Security and Privacy," EconStor Research Reports 126223, ZBW - Leibniz Information Centre for Economics.
    6. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    7. Geoffrey G. Parker & Marshall W. Van Alstyne, 2005. "Two-Sided Network Effects: A Theory of Information Product Design," Management Science, INFORMS, vol. 51(10), pages 1494-1504, October.
    8. Hagiu, Andrei & Wright, Julian, 2015. "Multi-sided platforms," International Journal of Industrial Organization, Elsevier, vol. 43(C), pages 162-174.
    9. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    10. Geoffrey Parker & Marshall Van Alstyne, 2018. "Innovation, Openness, and Platform Control," Management Science, INFORMS, vol. 64(7), pages 3015-3032, July.
    11. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.
    12. Robert Seamans & Feng Zhu, 2014. "Responses to Entry in Multi-Sided Markets: The Impact of Craigslist on Local Newspapers," Management Science, INFORMS, vol. 60(2), pages 476-493, February.
    13. Florencia Marotta-Wurgler, 2016. "Self-Regulation and Competition in Privacy Policies," The Journal of Legal Studies, University of Chicago Press, vol. 45(S2), pages 13-39.
    14. Carliss Y. Baldwin & C. Jason Woodard, 2009. "The Architecture of Platforms: A Unified View," Chapters, in: Annabelle Gawer (ed.), Platforms, Markets and Innovation, chapter 2, Edward Elgar Publishing.
    15. Susan Athey & Christian Catalini & Catherine Tucker, 2017. "The Digital Privacy Paradox: Small Money, Small Costs, Small Talk," NBER Working Papers 23488, National Bureau of Economic Research, Inc.
    16. Avi Goldfarb & Catherine Tucker, 2012. "Shifts in Privacy Concerns," American Economic Review, American Economic Association, vol. 102(3), pages 349-353, May.
    17. Gleb Romanyuk & Alex Smolin, 2019. "Cream Skimming and Information Design in Matching Markets," American Economic Journal: Microeconomics, American Economic Association, vol. 11(2), pages 250-276, May.
    18. Jörg Claussen & Christian Peukert & Ananya Sen, 2019. "The Editor vs. the Algorithm: Returns to Data and Externalities in Online News," CESifo Working Paper Series 8012, CESifo.
    19. Amalia R. Miller & Catherine Tucker, 2009. "Privacy Protection and Technology Diffusion: The Case of Electronic Medical Records," Management Science, INFORMS, vol. 55(7), pages 1077-1093, July.
    20. Hemant K. Bhargava & Vidyanand Choudhary, 2004. "Economics of an Information Intermediary with Aggregation Benefits," Information Systems Research, INFORMS, vol. 15(1), pages 22-36, March.
    21. Wen Wen & Feng Zhu, 2019. "Threat of platform‐owner entry and complementor responses: Evidence from the mobile app market," Strategic Management Journal, Wiley Blackwell, vol. 40(9), pages 1336-1367, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jullien, Bruno & Pavan, Alessandro & Rysman, Marc, 2021. "Two-sided Markets, Pricing, and Network Effects," TSE Working Papers 21-1238, Toulouse School of Economics (TSE).
    2. Xing Wan & Javier Cenamor & Geoffrey Parker & Marshall Van Alstyne, 2017. "Unraveling Platform Strategies: A Review from an Organizational Ambidexterity Perspective," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    3. MARTENS Bertin, 2020. "An economic perspective on data and platform market power," JRC Working Papers on Digital Economy 2020-09, Joint Research Centre.
    4. Mosterd, Lars & Sobota, Vladimir C.M. & van de Kaa, Geerten & Ding, Aaron Yi & de Reuver, Mark, 2021. "Context dependent trade-offs around platform-to-platform openness: The case of the Internet of Things," Technovation, Elsevier, vol. 108(C).
    5. Carmelo Cennamo & Hakan Ozalp & Tobias Kretschmer, 2018. "Platform Architecture and Quality Trade-offs of Multihoming Complements," Information Systems Research, INFORMS, vol. 29(2), pages 461-478, June.
    6. Ron Adner & Jianqing Chen & Feng Zhu, 2020. "Frenemies in Platform Markets: Heterogeneous Profit Foci as Drivers of Compatibility Decisions," Management Science, INFORMS, vol. 66(6), pages 2432-2451, June.
    7. Cenamor, Javier, 2021. "Complementor competitive advantage: A framework for strategic decisions," Journal of Business Research, Elsevier, vol. 122(C), pages 335-343.
    8. Georgios Petropoulos & Bertin Martens & Geoffrey Parker & Marshall Van Alstyne, 2023. "Platform Competition and Information Sharing," CESifo Working Paper Series 10663, CESifo.
    9. Zeng, Jing & Khan, Zaheer & De Silva, Muthu, 2019. "The emergence of multi-sided platform MNEs: Internalization theory and networks," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    10. Bleier, Alexander & Goldfarb, Avi & Tucker, Catherine, 2020. "Consumer privacy and the future of data-based innovation and marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 466-480.
    11. Edward G. Anderson & Geoffrey G. Parker & Burcu Tan, 2014. "Platform Performance Investment in the Presence of Network Externalities," Information Systems Research, INFORMS, vol. 25(1), pages 152-172, March.
    12. Timothy Simcoe & Jeremy Watson, 2019. "Forking, Fragmentation, and Splintering," Strategy Science, INFORMS, vol. 4(4), pages 283-297, December.
    13. Wu, Mian & (David) Liu, Yulong & Jasimuddin, Sajjad M. & (Justin) Zhang, Zuopeng, 2023. "Rethinking cross-border mobile payment ecosystems: A process study of mobile payment platform complementors, network effect holes and ecosystem modules," International Business Review, Elsevier, vol. 32(1).
    14. Michael Kummer & Patrick Schulte, 2019. "When Private Information Settles the Bill: Money and Privacy in Google’s Market for Smartphone Applications," Management Science, INFORMS, vol. 65(8), pages 3470-3494, August.
    15. Tavalaei, M. Mahdi, 2020. "Waiting time in two-sided platforms: The case of the airport industry," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    16. Veile, Johannes W. & Schmidt, Marie-Christin & Voigt, Kai-Ingo, 2022. "Toward a new era of cooperation: How industrial digital platforms transform business models in Industry 4.0," Journal of Business Research, Elsevier, vol. 143(C), pages 387-405.
    17. Basaure, Arturo & Vesselkov, Alexandr & Töyli, Juuso, 2020. "Internet of things (IoT) platform competition: Consumer switching versus provider multihoming," Technovation, Elsevier, vol. 90.
    18. Daron Acemoglu & Ali Makhdoumi & Azarakhsh Malekian & Asu Ozdaglar, 2022. "Too Much Data: Prices and Inefficiencies in Data Markets," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 218-256, November.
    19. Mert Demirer & Diego Jimenez-Hernandez & Dean Li & Sida Peng, 2024. "Data, Privacy Laws and Firm Production: Evidence from the GDPR," Working Paper Series WP 2024-02, Federal Reserve Bank of Chicago.
    20. Catherine Tucker, 2023. "The Economics of Privacy: An Agenda," NBER Chapters, in: The Economics of Privacy, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:mktlet:v:31:y:2020:i:4:d:10.1007_s11002-020-09539-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.