A metaphor for platform development processes

Abstract

There is considerable research on platform market competition. However, there is significantly less research on governance of the preceding stage of platform development prior to market launch. This paper proposes that the avalanche game is an appropriate metaphor for this. A typical platform development process is outlined and the correspondence between it and the game is drawn and elaborated. In order to explore the role of incentives in platform development, the original simulation model of the formal avalanche game is extended using literature on the incentives of platform development processes. The exploration of the extended model behaviour provides insights about how platform governance incentives may influence platform development process.Policy AnalysisEconomics of Technology and Innovatio