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Should I stay or should I go? Migrating away from an incumbent platform

Author

Listed:
  • Jacques Crémer

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Gary Biglaiser

    (UNC - University of North Carolina [Chapel Hill] - UNC - University of North Carolina System)

  • André Veiga

    (Imperial College London)

Abstract

We study incumbency advantage in markets with positive consumption externalities. Users of an incumbent platform receive sto- chastic opportunities to migrate to an entrant and can either accept them or wait for a future opportunity. In some circumstances, users have incentives to delay migration until others have migrated. If they all do so, no migration takes place, even when migration would have been Pareto-superior. We use our framework to identify environments where incumbency advantage is larger. A key result is that having more migration opportunities actually increases incumbency advantage.

Suggested Citation

  • Jacques Crémer & Gary Biglaiser & André Veiga, 2022. "Should I stay or should I go? Migrating away from an incumbent platform," Post-Print hal-03792918, HAL.
    • Handle: RePEc:hal:journl:hal-03792918
    DOI: 10.1111/1756-2171.12418
    Note: View the original document on HAL open archive server: https://hal.science/hal-03792918
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    References listed on IDEAS

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    Keywords

    Platform; Migration; Standardization and Compatibility; Industry Dynamics;
    All these keywords.

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