CIS 3810 Post 3

Question #3: If you are to launch a new social platform on the market, would you want it to have same-side exchange benefits or cross-side exchange benefits? What is more beneficial for you as a platform owner?

When launching a new social platform I think cross-side exchange benefits are those that should be wanted. The ability to have your platform grow in its user base and developer base are the goal and with cross-side exchange benefits you get just that. The problem with cross-side exchange is that you need a substantial user base to be able to bring in developers. In the case of a social network like that of Facebook, third party developers, like those who creates games like Farmville, are not going to be there in the beginning stages because there isn’t a big enough user base and there is not benefit from developing games or apps because of the lack of users of the social platform. This is a problem that has a solution of same-side exchange benefits. Same-side exchange exclusively builds your user base which can bring in developers if the numbers are substantial enough. There would be no growth without both sets of benefits but I believe that same-side exchange nudges cross-side exchange in importance because lack of users equals lack of developers.