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Stability and Its Determinants of Platform Ecosystem

Lamia Loudahi 1 and Adnan Khurshid 2
1. College of Mathematics and Computer Science, Zhejiang Normal University, Jinhua 321004, China
2. School of Economics and Management, Zhejiang Normal University, Jinhua 321004, China
Abstract—How can stability help platform to thrive? In management sciences, traditional studies have based on theoretical concepts of platforms ecosystem and its stability conditions, but no one have found numerical answers. Suppliers-Consumers mutualistic network sustains the needs of suppliers and consumers in daily life. Global economic changes threaten these networks to move from stable state to the instable one and creating perturbations inside platforms. Here we developed a mathematical model (S-C model) which incorporating the dynamics, interactions and mutualistic network for platform ecosystem. This model served to us to predict the system’s stability conditions, our predictions can be calculated using the reduced model (with artificial data). But we faced with difficulty of random variables that made the system more complex, so to better achieve our results we used the Monte Carlo method to simulate the variables and find out their confidence interval that contribute to the stability conditions. Our model can serve as a paradigm to understand and control the stability of platforms in real mutualistic networks for the safeguard of platforms. The general principle can be extended to a wide range of disciplines to deal with stability issues.

Index Terms—Stability, Platform ecosystem, Consumers and suppliers, Interactions, Collapse, Monte Carlo
Cite: Lamia Loudahi and Adnan Khurshid, "Stability and Its Determinants of Platform Ecosystem," Journal of Advanced Management Science, Vol. 10, No. 4, pp. 115-130, December 2022. doi: 10.18178/joams.10.4.115-130

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