Complex Dynamics in the Platform Ecosystem Competition Model Between IHAs and THAs

Jianli Xiao, Hanli Xiao and Xinchang Zhang

SAGE Open, 2025, vol. 15, issue 2, 21582440251335175

Abstract: The advancement of networking technology has significantly facilitated the emergence and growth of platform ecosystems. This study develops a comprehensive platform ecosystem competition model, incorporating both the comprises a single platform that provides in-house app (IHAs) and multiple third-party platforms who provide third-party apps (TPAs). The research findings underscore the significant influence of three key factors, namely the platform’s adjustment speed, platform scale, and the platform fees imposed on third-party platforms, on the overall stability of the platform ecosystem. Specifically, higher adjustment speeds are found to be inversely associated with platform ecosystem stability. Furthermore, during periods of stability, the platform typically sets higher IHA price compared to TPAs price. Consequently, the instability within the platform ecosystem results in profit losses for the IHAs and TPAs. Moreover, a larger scale of the platform, which means a higher number of TPAs is identified as a catalyst for enhancing the stability of the platform ecosystem. In a state of stability, increased participation of TPAs leads to higher profitability for the platform, while dampening the profitability of the third-party platforms. Furthermore, the research demonstrates a negative correlation between higher platform fees and platform ecosystem stability. Although raising platform fees may enhance the platform’s profits, it significantly intensifies the challenges associated with platform management and results in losses for third-party platforms. Finally, the implementation of time-delayed feedback control (TDFC) methods effectively improves the stability of the platform ecosystem Platform managers need to balance platform profits with stability to foster the development of the platform ecosystem.

Keywords: chaos theory; platform ecosystem; bifurcation; TDFC method (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:2:p:21582440251335175

DOI: 10.1177/21582440251335175

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