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Platform Liquidity: Why Economic Incentives Matter

Monday, October 5, 2020 5:25

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From http://www.tech-thoughts.net/

Network effects can only take hold when a product has reached a minimum threshold or critical mass of users (also called liquidity) — this is true for marketplaces, interaction networks, and data networks. Platforms, on the other hand, are unique because they are always built on top of another product with existing adoption. So, as we saw with SaaS-enabled marketplaces, it is natural to assume that platforms can leverage these existing customers to attract a critical mass of developers. Wouldn’t they have liquidity right from the get-go? Not always.

Read more at breadcrumb.vc

Go to http://www.tech-thoughts.net/ for more analysis on the mobile industry

Source: http://www.tech-thoughts.net/2020/10/platform-liquidity-economic-incentives.html

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