Table 13 Oct 2026From “Subsidizing one platform side can be a network design decision”

What does the literature support, and what does it leave open?

Table 1What does the literature support, and what does it leave open?

Source	What it contributes	What it cannot establish
Parker and Van Alstyne (2005)	A model of cross-market network effects and the conditions that influence which side receives a discount.	The right subsidy for a named platform or a current price recommendation.
Rochet and Tirole (2003)	A price-structure distinction and theoretical or illustrative business-model arrangements.	A universal loss-leader design or evidence that an illustrated model succeeded.
Boudreau and Jeppesen (2015)	A bounded study of 85 online multiplayer game platforms with unpaid complementors.	A result for paid complementors, other platform types, or every current network.
Kaiser and Wright (2006)	An estimated model of nine German two-magazine groups using 1972–2003 data.	A transferable subsidy effect: the sample is small, the reader-side margin estimate is not significant, and the authors call the results illustrative.

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Pricing & revenue architecture

Subsidizing one platform side can be a network design decision

A lower price can attract participation without creating useful network value. Name the side, response, burden, horizon, and stop rule before continuing.

3 Oct 2026

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Isoglu, S. (2026). What does the literature support, and what does it leave open? [Table]. isoglu.com. https://isoglu.com/insights/exhibits/isoglu-2026-subsidizing-one-platform-side-is-a-network-design-decision-fig01/

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@misc{isoglu-2026-subsidizing-one-platform-side-is-a-network-design-decision-fig01,
  author = {Isoglu, Sinan},
  title = {{What does the literature support, and what does it leave open?}},
  year = {2026},
  howpublished = {Table 1, isoglu.com},
  url = {https://isoglu.com/insights/exhibits/isoglu-2026-subsidizing-one-platform-side-is-a-network-design-decision-fig01/},
  note = {From the essay {Subsidizing one platform side can be a network design decision}}
}

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