An analytical framework for evaluating peer-to-peer business models

While existing research on peer-to-peer (P2P) file-sharing services has increased our understanding in many respects, it has not yet supplied a comprehensive theoretical framework that explains business failures of P2P file-sharing network service models. We develop such an analytical model and base...

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Bibliographic Details
Published in:Electronic commerce research and applications 2008-03, Vol.7 (1), p.105-118
Main Authors: Hughes, Jerald, Lang, Karl R., Vragov, Roumen
Format: Article
Language:English
Subjects:
Alliances
Business models
Digital entertainment
Digital music
Electronic commerce
Electronic markets
File sharing
Online content sharing
Peer to peer computing
Peer-to-peer file-sharing systems
Studies
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Summary:While existing research on peer-to-peer (P2P) file-sharing services has increased our understanding in many respects, it has not yet supplied a comprehensive theoretical framework that explains business failures of P2P file-sharing network service models. We develop such an analytical model and base it on seven specific market constraints – technical, economic, structural, legal, political, cognitive, and cultural – that are specifically relevant for P2P services. We show how our model can be used as a tool for strategic analysis of P2P business model performance using Napster as a particular case of study. We show also how P2P file-sharing networks have migrated through a series of system typologies by incorporating technological innovations in response to market constraints. Finally, we offer a new theoretical conceptualization that views P2P file-sharing networks as electronic markets.
ISSN:1567-4223
1873-7846
DOI:10.1016/j.elerap.2007.01.001