Do negative externalities affect platform membership conditions? The impact of moral and regulatory legitimacy on platform governance

When allowing third parties to join their platforms, platform owners run the risk of attracting harmful third-party complements. Existing literature considers that low-quality offerings negatively affect cross-side user satisfaction and attractiveness, ultimately harming the platform's reputation and stability. However, recent events show that...

The interplay of risks on digital platform openness – a case study

A platform needs to have sufficient market potential, represented by the number of users who can join a platform. Platform openness affects the ease of actors joining the platform. Hence, in order to increase the chances of platform success, platforms want to maximize market potential and consequently also platform openness. This is problematic...