Affiliation:
1. Nanyang Technological University, Singapore
Abstract
Faced with different market contexts and changing circumstances, businesses in the IDM marketplace often find themselves in a dilemma with respect to whether to make their platforms open or closed. This chapter presents the Open vs. Closed Value Analysis Framework Model that identifies, describes, and categorizes considerations for IDM platform owners deciding whether, where, when, and how to make their platforms more open or closed. We focused on platform-mediated networks commonly found in the IDM marketplace. We have found that there are generally no clear-cut rules of thumb that point clearly to whether a platform should be open or closed. Various factors like new industry entrants vs. dominant incumbent platforms, the presence and significance of complementors giving competitive advantage, and platform superiority weigh in on the decision.
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