| Title | Market-expanding or Market-stealing? Competition with network effects in bike-sharing |
| Authors | Cao, Guangyu Jin, Ginger Zhe Weng, Xi Zhou, Li-An |
| Affiliation | Peking Univ, Beijing, Peoples R China Univ Maryland, College Pk, MD 20742 USA NBER, Cambridge, MA 02138 USA |
| Keywords | EXTERNALITIES ENTRY TRANSPORTATION TECHNOLOGIES FRICTIONS ADOPTION SEARCH |
| Issue Date | Dec-2021 |
| Publisher | RAND JOURNAL OF ECONOMICS |
| Abstract | Using staggered entry of two dockless bike-sharing firms, we study whether the entrant expands or steals the market from the incumbent in 59 cities. Compared with 23 cities without entry, the entry helps the incumbent to serve more trips, make more bike investment, achieve higher revenue per trip, improve bike utilization, and form a wider and more dispersed network. The market-expanding effect on new users dominates a significant market-stealing effect on old users. These findings, plus a theory that highlights consumer search and network effects, suggest that a market with positive network effects and multihoming users is not necessarily winner-takes-all. |
| URI | http://hdl.handle.net/20.500.11897/631459 |
| ISSN | 0741-6261 |
| DOI | 10.1111/1756-2171.12391 |
| Indexed | SSCI |
| Appears in Collections: | 待认领 |
