Author:
Parker Geoffrey,Van Alstyne Marshall
Abstract
AbstractIn this chapter, we describe platforms and their structure and how that structure differs from traditional linear value chains. We then discuss some of the key economic factors, including two-sided and multi-sided network effects, which underpin both the platform value proposition and the ability to create welfare for users. Platform and technology firms have grown to the point where their market capitalizations greatly exceed oil, gas, and financial services firms. We then explore some key governance and regulatory issues, including privacy, false information, and antitrust. We conclude with a discussion of emerging issues posed by Large Language Models such as ChatGPT, including their ability to create false information at scale and disrupt creative industries.
Publisher
Springer Nature Switzerland
Reference51 articles.
1. Akerlof, G. A. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488–500.
2. Akers, D., Golter, J., Lamm, B., & Solt, M. (2005). Overview of recent developments in the credit card industry. FDIC Banking Review, 17(3), 23–35.
3. Anderson, E. G., Bhargava, H. K., Boehm, J., & Parker, G. G. (2022a). Electric vehicles are a platform business: What firms need to know. California Management Review, 64(4), 135–154.
4. Anderson, E. G., Lopez, J., & Parker, G. G. (2022b). Leveraging value creation to drive the growth of B2B platforms. Production and Operations Management, 31(12), 4501–4514.
5. Aoyama, Y., & Izushi, H. (2003). Hardware gimmick or cultural innovation? Technological, cultural, and social foundations of the Japanese video game industry. Research Policy, 32(3), 423–444.