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Market Expanding or Market Stealing? Competition with Network Effects in BikeSharing / Guangyu Cao, Ginger Zhe Jin, Xi Weng, Li-An Zhou.
- Format:
- Book
- Author/Creator:
- Cao, Guangyu.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w24938.
- NBER working paper series no. w24938
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2018.
- Summary:
- Using staggered entry of two dockless bikesharing firms, we find the entrant expands the market for the incumbent. The entry helps the incumbent to serve a greater number of trips, make more bike investment, achieve higher revenue per trip, improve bike utilization rate, and form a wider and more evenly distributed network. The market expansion effect on new users dominates a significant marketstealing effect on old users. These findings, together with a theoretical model that highlights consumer search and network effects, suggest that a market with positive network effects is not necessarily winnertakesall, especially when users multihome across compatible networks.
- Notes:
- Print version record
- August 2018.
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