On “influencers” and their impact on the diffusion of digital platforms

Abstract

We simulate the impact of influencers in the adoption of digital multi-sided platforms. We consider four metrics to identify influencers: degree, betweenness, closeness and page rank, and we test how they shape the adoption, prices, and profits of digital multi-sided platforms using an agent-based model. We simulate the market adoption with and without those influencers. We find that adoption is lower and grows slower without influencers. This result is also valid even when one side has influencers, but the other one has not. Depending on the network we assume, the role of influencers is different. In some cases, the launching fails, in others, it is slower only. We also find that prices are sensitive to influencers. However, the effect on prices depends on which centrality measure we consider. Companies use prices as a tool to counterbalance the influence of influencers in profits. Lastly, we show that profits are very sensitive to influencers, without them, profits are lower.