Tag Archives: network effects

The Value of Expectations and Hype For Platforms

Network effects (direct or indirect) create the possibility of multiple (stable) equilibrium market configurations

What determines which equilibrium market configuration prevails?


What determines/influences expectations?

  • Path-dependence (winner in last generation oftentimes expected to win in the current generation)
  • Platforms might use non-price coordination instruments to affect expectations in their favor: e.g. First-party games/applications/content
  • Public announcements & commitments (if feasible)

Here’s the link to the slides.

All Hail the iPod touch – GigaOM

All Hail the iPod touch – GigaOM.

I’ve seen some posts about the value of the iPod touch as the training wheels that prep kids to go on an purchase an iPhone.   That’s valuable but I think the most important contribution of the touch is how it expands the OS platform.  I would argue that the iPhone would have matured at a much slower pace were it not for the iPod touch.