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From course:

Managing a Business Strategically

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(Practice similar questions for free)
Question:

Which side to subsidize?

Author: Pim Bodzinga



Answer:

- Lowest likelihood of “multi-homing” (= supporting multiple platforms) - Highest price-elasticity (price-sensitivity) - Highest sensitivity to quality - Lowest marginal membership cost - Lowest negative same-side network effects (i.e. competitive crowding)


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