And the Winner Is …? The Desirable and Undesirable Effects of Platform Awards

We examine platform firms’ selection to understand innovation through complementors ex publish thru awards. Despite being basically symbolic, awards may set incentives for complementors’ product techniques that could finally cause each suitable and unwanted results for the platform firm. We leave from signaling principle and derive hypotheses at the consequences of awards on complementors’ product techniques. To check them, we put into effect a quasi-test withinside the context of the Google Android cellular platform and the distinguished Google Play Award. We infer the impact of the award through estimating the difference-in-variations among award winners and runners-up, earlier than and after the conferral. The most important pattern encompasses one hundred twenty five award nominees and their 793 apps among 2016 and 2018. We file 3 findings. First, the award encourages recipients to attention on freeing supplement upgrades in place of new complements. Second, the award will increase recipients’ chance of multihoming. Finally, the award will increase new supplement releases withinside the recipients’ marketplace area of interest through attracting different complementors. We make a contribution to the platform governance literature through informing approximately the consequences of awards. Additionally, our findings have theoretical implications for understanding “soft

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