The Study of Digital Platform Service Market Definition Based on the Attention Cost 


Vol. 45,  No. 10, pp. 1728-1738, Oct.  2020
10.7840/kics.2020.45.10.1728


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  Abstract

This paper reviewed the market definition of digital platform. It is not easy to define the market of digital platform based on the existing methodology such as SSNIP, since digital platforms provide service with free of charge. The previous research showed that the market definition of digital platform based on the non-price factor is theoretically reasonable because the competition of digital platform is described as non-price competition. Inasmuch as one of the main revenue sources of digital platform is advertising, some previous research suggested that the attention cost(advertising loads) might be one of the main non-price factors which can explain the competition of digital platform. In this line with these previous research, this paper proposed the methodology measuring the demand substitutability based on the increase in attention cost. The empirical results showed that the demand substitability among general search service, SNS, and video share service is limited. This proposed method might be used as one of the alternative ways of estimating demand substitute of digital platform services.

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  Cite this article

[IEEE Style]

Nam, "The Study of Digital Platform Service Market Definition Based on the Attention Cost," The Journal of Korean Institute of Communications and Information Sciences, vol. 45, no. 10, pp. 1728-1738, 2020. DOI: 10.7840/kics.2020.45.10.1728.

[ACM Style]

Nam. 2020. The Study of Digital Platform Service Market Definition Based on the Attention Cost. The Journal of Korean Institute of Communications and Information Sciences, 45, 10, (2020), 1728-1738. DOI: 10.7840/kics.2020.45.10.1728.

[KICS Style]

Nam, "The Study of Digital Platform Service Market Definition Based on the Attention Cost," The Journal of Korean Institute of Communications and Information Sciences, vol. 45, no. 10, pp. 1728-1738, 10. 2020. (https://doi.org/10.7840/kics.2020.45.10.1728)

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pISSN : 1226 - 4717
eISSN : 2287 - 3880