Think of network-dependent consumerism like the business of logistics. Just as having multiple routes to deliver goods ensures reliability, relying on multiple networks with a host computer having various connections is key for network-dependent consumerism to work smoothly.

In the world of digital platforms for business, it’s a lesson from experience not to put all your eggs in one basket by depending on a single network or just a few operators.

Platform use

Researchers from Kyoto University looked into how consumers use platforms. They studied the difference between those who stick to just one platform (single-homing consumers) and those who use multiple platforms (multi-homing consumers). The team came up with a new way of figuring out if having more consumers who use multiple platforms can make business platforms work more efficiently when you’re integrating two of them.

“Our study is related to the economics of imperfect competition, a field covering various market-related issues that has become increasingly important as information and communication technology advances,” the researchers explain.

When people stick to just one platform (single-homing), that platform naturally becomes a big deal for consumers. But the spotlight is shifting towards the need for policy guidance in the world of multi-homing, where more consumers are using multiple platforms. This shift is important to consider when thinking about how to regulate and set policies in the digital realm.

“In addition, an increase in the degree of multi-homing needs a more considerable reduction in the cost for allowing a business consolidation. It also creates higher barriers to entry for new platform firms,” the authors conclude.

“We must note, therefore, under multi-homing situations, competition authorities may need to be more cautious about potential harms of platform mergers and entry barriers.”