Strategy Letter V¶
Spolsky, J. (2002). Strategy Letter V. Joel on Software.
Cited by¶
1 citation across 1 artifact.
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Mechanisms¶
- Platform Ecosystem Incentive Scheme
- Its failure mode is that the same levers that can strengthen complements can commoditize them — a platform can systematically drive the price of its complements toward zero to capture the surplus, a strategy long recognized in platform economics.
This sourceExplains that firms can profit from a core product by commoditizing its complements, pushing their prices downward to increase demand for the core.
- Its failure mode is that the same levers that can strengthen complements can commoditize them — a platform can systematically drive the price of its complements toward zero to capture the surplus, a strategy long recognized in platform economics.
Verification¶
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