Indirect Network Effect and Spillover Effect in Food Delivery Platforms
I analyze how the food delivery market’s indirect network effect and spillover effect influence the spread of food delivery platforms in different counties. This study finds that there is a positive local indirect network effect and a positive spillover effect in the adoption of the platform by exam...
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| Format: | Article |
| Language: | English |
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Korea Development Institute
2022-11-01
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| Series: | KDI Journal of Economic Policy |
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| Online Access: | https://kdijep.org/v.44/4/25/Indirect+Network+Effect+and+Spillover+Effect+in+Food+Delivery+Platforms |
| _version_ | 1828089940300267520 |
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| author | GONG LEE |
| author_facet | GONG LEE |
| author_sort | GONG LEE |
| collection | DOAJ |
| description | I analyze how the food delivery market’s indirect network effect and spillover effect influence the spread of food delivery platforms in different counties. This study finds that there is a positive local indirect network effect and a positive spillover effect in the adoption of the platform by examining the food delivery platform market in South Korea as of 2020. As food delivery platforms secure consumers who use them, more restaurants on the other side of a two-sided market adopt such platforms (indirect network effect). The spillover effect would allow other restaurants in a region to become more likely to adopt food delivery platforms if there are a greater number of restaurants in the region that use such platforms. This study contributes to the comprehension of technology diffusion and the marketing strategies of platform providers by providing empirical evidence of both effects. |
| first_indexed | 2024-04-11T05:49:19Z |
| format | Article |
| id | doaj.art-d82f3dd08f534b73a084bb8cdf5df918 |
| institution | Directory Open Access Journal |
| issn | 2586-2995 2586-4130 |
| language | English |
| last_indexed | 2024-04-11T05:49:19Z |
| publishDate | 2022-11-01 |
| publisher | Korea Development Institute |
| record_format | Article |
| series | KDI Journal of Economic Policy |
| spelling | doaj.art-d82f3dd08f534b73a084bb8cdf5df9182022-12-22T04:42:07ZengKorea Development InstituteKDI Journal of Economic Policy2586-29952586-41302022-11-014442542https://doi.org/10.23895/kdijep.2022.44.4.25Indirect Network Effect and Spillover Effect in Food Delivery PlatformsGONG LEE0Associate Fellow, Korea Development InstituteI analyze how the food delivery market’s indirect network effect and spillover effect influence the spread of food delivery platforms in different counties. This study finds that there is a positive local indirect network effect and a positive spillover effect in the adoption of the platform by examining the food delivery platform market in South Korea as of 2020. As food delivery platforms secure consumers who use them, more restaurants on the other side of a two-sided market adopt such platforms (indirect network effect). The spillover effect would allow other restaurants in a region to become more likely to adopt food delivery platforms if there are a greater number of restaurants in the region that use such platforms. This study contributes to the comprehension of technology diffusion and the marketing strategies of platform providers by providing empirical evidence of both effects.https://kdijep.org/v.44/4/25/Indirect+Network+Effect+and+Spillover+Effect+in+Food+Delivery+Platformsnetwork effectspillover effectfood delivery platformscovid-19south korea |
| spellingShingle | GONG LEE Indirect Network Effect and Spillover Effect in Food Delivery Platforms KDI Journal of Economic Policy network effect spillover effect food delivery platforms covid-19 south korea |
| title | Indirect Network Effect and Spillover Effect in Food Delivery Platforms |
| title_full | Indirect Network Effect and Spillover Effect in Food Delivery Platforms |
| title_fullStr | Indirect Network Effect and Spillover Effect in Food Delivery Platforms |
| title_full_unstemmed | Indirect Network Effect and Spillover Effect in Food Delivery Platforms |
| title_short | Indirect Network Effect and Spillover Effect in Food Delivery Platforms |
| title_sort | indirect network effect and spillover effect in food delivery platforms |
| topic | network effect spillover effect food delivery platforms covid-19 south korea |
| url | https://kdijep.org/v.44/4/25/Indirect+Network+Effect+and+Spillover+Effect+in+Food+Delivery+Platforms |
| work_keys_str_mv | AT gonglee indirectnetworkeffectandspillovereffectinfooddeliveryplatforms |