Chasing Digital by Anthony Stevens & Louis Strauss

Author:Anthony Stevens & Louis Strauss [Stevens, Anthony & Strauss, Louis]
Language: eng
Format: epub
ISBN: 9780730358640
Publisher: Wiley
Published: 2018-05-19T00:00:00+00:00

It should be noted that though platform aggregators have no marginal costs on the demand side, and significantly lower costs on the supply side, they will most likely have large fixed costs, such as the costs of their software, and, over a long timeframe, all fixed costs become variable costs. That said, as these platforms grow their respective user groups, these costs are spread across the users until they are significantly small, especially once the network effect comes into play and the platform ‘pull’ attracts new users organically.

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