Should I Stay or Should I Go? Migrating Away from an Incumbent Platform

57 Pages Posted: 25 Mar 2020 Last revised: 4 Feb 2022

See all articles by Gary Biglaiser

Gary Biglaiser

University of North Carolina

Jacques Crémer

University of Toulouse 1 - Toulouse School of Economics (TSE)

Andre Veiga

Imperial College London

Multiple version iconThere are 4 versions of this paper

Date Written: March 2020

Abstract

We study incumbency advantage in markets with positive consumption externalities. Users of an incumbent platform receive stochastic opportunities to migrate to an entrant and can either accept them or wait for a future opportunity. In some circumstances, users have incentives to delay migration until others have migrated. If they all do so, no migration takes place, even when migration would have

been Pareto-superior. We use our framework to identify environments where incumbency advantage is larger. A key result is that having

more migration opportunities actually increases incumbency advantage.

Keywords: industry dynamics, migration, Platform, Standardization and Compatibility

JEL Classification: D85, L14, L15, L16, R23

Suggested Citation

Biglaiser, Gary and Crémer, Jacques and Veiga, Andre, Should I Stay or Should I Go? Migrating Away from an Incumbent Platform (March 2020). CEPR Discussion Paper No. DP14496, Available at SSRN: https://ssrn.com/abstract=3560304

Gary Biglaiser (Contact Author)

University of North Carolina ( email )

Chapel Hill, NC 27599
United States
919-966-4884 (Phone)
919-966-4986 (Fax)

Jacques Crémer

University of Toulouse 1 - Toulouse School of Economics (TSE) ( email )

Place Anatole-France
Toulouse Cedex, F-31042
France

Andre Veiga

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
2
Abstract Views
207
PlumX Metrics