What is it about?
Under multihoming without product differentiation, all members of the smaller network multihome to the bigger network and the social networking website with the bigger network size benefits from multihoming. Under multihoming with product differentiation, when the smaller network differentiates its product from the bigger network,then all members of the bigger network will multihome to the smaller network. Welfare is higher for both sided multihoming and both sided multihoming will happen only when the social networking web sites are differentiated in terms of features.
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Why is it important?
The results of the model indicate that multihoming results in increased utility for the users of social networking web sites when the two web sites are differentiated in terms of features.
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This page is a summary of: Multihoming behavior of users in social networking web sites: a theoretical model, Information Technology and People, November 2011, Emerald,
DOI: 10.1108/09593841111182250.
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