@article {1192, title = {When a New Platform Enters a Market, What Is the Impact on Incumbents?}, journal = {Technology Innovation Management Review}, volume = {8}, year = {2018}, month = {10/2018}, pages = {44-53}, publisher = {Talent First Network}, address = {Ottawa}, abstract = {Digital platforms enable new forms of business models with the potential to disrupt and transform many industries. However, the impact of a platform{\textquoteright}s market entry on incumbents has not been taken into account. In this article, our objective is to provide evidence of the impact that a platform{\textquoteright}s market entry could have on incumbents. We proposed several hypotheses based on a literature review and then evaluated them using a large dataset from the taxi industry in New York City. Our analysis showed several changes after a platform{\textquoteright}s market entry. In contrast to previous understanding, the results indicate that the winner-takes-it-all-effect does not generally apply to the competition between new platforms and incumbents. Regarding the date of changes following a platform{\textquoteright}s market entry, we observed a chicken-or-egg problem in the competition between a platform and incumbents. Consequently, our results indicate that incumbents have at least one year to react to the market entry and to make adjustments. }, keywords = {impact of market entry, incumbents, multi-sided market, platform competition, platforms, two-sided market}, issn = {1927-0321}, doi = {http://doi.org/10.22215/timreview/1192}, url = {https://timreview.ca/article/1192}, author = {Andreas J. Steur} }