Citation
Platform Revolution
TL;DR
Platforms create value through network effects and matching
This book synthesized research on platform economics, providing practical frameworks for building and scaling platform businesses. The authors emphasized the importance of achieving critical mass and creating network effects through strategic coordination.
The work connects biological quorum-sensing principles to concrete platform strategy, showing how threshold-based coordination enables platforms to capture value.
Key Findings from Parker et al. (2016)
- Platforms create value through network effects and matching
- Critical mass is essential for platform viability
- Chicken-and-egg problems can be solved through seeding strategies
- Platform coordination requires different approaches than traditional businesses