Abstract
Traditional attack-response research suggests that successful attacks are those with delayed responses or those that go unchallenged by competitors while suggesting target firms respond immediately. However, this long-standing claim may not be generalizable to emerging digital platform markets characterized by indirect network effects, the interconnectedness between customers and complementors. This simulation study based on a Bayesian game-theoretic model uncovers temporal market dynamics among market participants with the given attack under indirect network effects and derives several contexts in which nonresponse can be a target firm’s winning strategy.
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