Promoting Platform Takeoff and Self-Fulfilling Expectations: Field Experimental Evidence

A platform might have the potential to bring enormous value its users. However, without a well-orchestrated launch strategy that coordinates sufficient number of users onto platform, this will not be realized. The theoretical literature predicts one approach coordinating take-off is influence market’s subjective focal expectations future installed base This paper reports on field experiment investigating causal role in new venture, which invitations join newly launched were sent 16,349 individuals. included randomized statements regarding size expected (along with disclosures current base). I find simple, subjective, uncommitted, and relatively costless broadcasted by goal influencing market indeed able takeoff overcome an initial chicken-and-egg problem. These had larger adoption rates than did true during early adoption. these ceased any effect once grew large. discuss implications for promotion, marketing, evangelism ventures. was accepted Duncan Simester, marketing.