COMPETITIVE STRATEGY ON MULTI-HOMING IN TWO-SIDED MARKETS

The paper set up a hotelling model with indirect network effects to analyze end-users' multi-homing strategy in two-sided markets. There is an increasing number of end-users who multi-homing to get greater network benefits although platforms' products are compatible. This phenomenon has not been interpreted in network externality. We analyze whether multi-homing and compatibility or not using the model. And found that because of all compatibility of platforms, is partial, there are many end-users multi-homing even platforms compatible.