Platform Competition and Winner-Take-Most Dynamics

Simulates the conditions under which platform markets tip toward monopoly versus sustain competition.

Key findings

• Network effects must exceed a critical threshold of approximately 0.3 elasticity to produce winner-take-most outcomes.
• Multi-homing costs below $50/year prevent tipping and sustain 2-3 player equilibria indefinitely.
• Differentiation along a second dimension (e.g., privacy, curation) prevents tipping in 65% of scenarios.