The Factors Affecting Producers Incentives And Platform Performance On Open Two-sided Software Platforms

Two-sided platform is a typical business ecosystem model.Open and free two-sided platform is more special due to the loss of money motivation.According to the traditional net effect theory,platforms perform better when the number of one side users increases.Also product or service providers hold higher incentives because of monetary gains.Even the platform is likely to acquire the achievement of"winner-take-all".However everything is different when platforms lose money motivation.Motivation and incentives of product or service producers,platform market performance become diverse.The diversification is attributed to not only two-sided users but also rating and reviews on platforms.The platform is a typical business ecosystem model.All participants influence others and depend on others.Their actions will affect others'decisions.So it's necessary to take others'performance into account when explore one of anticipants.This paper focuses on free software two-sided platforms.From the point of view of quantity and quality,we find producers incentives and platforms download rate decrease when producers increase to a high extent.At the same time,producers update incentives decrease when software qualities increase.Platforms download rate increases when software qualities increase.Also we find the moderating effect of platform audit time.As more producers,the decreasing speed of platforms download rate is slower when audit time is longer.As qualities higher,the increasing speed of platforms download rate is quicker when audit time is longer.There are many existing articles about two-sided platforms.Some are about how to attract two-sided users on board.Some research net effect theory.Some explore how to set up suitable pricing model.Also some discuss the regulating role of platform itself.Most of these articles just discuss one of users on platforms.This article considers overall participants on two-sided platforms.And the results show special characters of producers and platform itself.Also we discuss net effect from a new prospect.We explore specific effects between different anticipants on two-sided platform ecosystem.Finally,we give some advices about how to manage platform correctly and appropriately.