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Attract Quote by Alvin E. Roth

“As with other kinds of markets, popular operating systems quickly get more and more popular, as they attract both new buyers and new sellers. In time, they become de facto industry standards—meaning they essentially establish a marketplace in which products (new applications) can be sold. Once…” quote by Alvin E. Roth
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““As with other kinds of markets, popular operating systems quickly get more and more popular, as they attract both new buyers and new sellers. In time, they become de facto industry standards—meaning they essentially establish a marketplace in which products (new applications) can be sold. Once this happens, they can, at least for a time, so completely dominate their markets that competing operating systems can’t attract enough users and developers to be anything but niche offerings.””

Alvin E. Roth

About This Quote

Source Book: Markets and Platforms, Alvin E. Roth, 2020

Operating systems that attract many users and developers become self‑reinforcing standards, making rivals niche.

In simple terms: Popular platforms become standards, squeezing out competition.

Key Takeaway

Recognize network effects in tech markets.

Themes

technology network effects market dynamics

Mood

analytical critical

Type

economic strategic

When to use this quote

  • software development
  • business strategy
  • antitrust policy

Key Concepts

economics platform strategy

Questions to Reflect On

  • What can new entrants do to break a platform monopoly?
  • How do network effects impact consumer welfare?
A Different Perspective

Dominance can stifle innovation and choice.

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