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But there's minimal stickiness to the network. The switching cost to another network is almost free, and the network value itself is pretty low. Consider eBay,
by acchow 10y ago
But there's minimal stickiness to the network. The switching cost to another network is almost free, and the network value itself is pretty low.
Consider eBay, perhaps the most-successful two-sided network of the first dot-com boom. You could switch to another auction site, but as a seller you would lose all of your online reputation (sales history) which is worth a lot on eBay (since people don't buy expensive items from someone with no sales history whatsoever). When is the last time you cared how many drives your Uber/Lyft driver had given? eBay - very sticky. Uber/Lyft - not so much.