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

  • Authors:

  • Jerald Hughes;Karl R. Lang;Roumen Vragov

  • Affiliations:

  • Department of Computer Information Systems and Quantitative Methods, College of Business Administration, University of Texas Pan-American, Edinburg, TX 78541, USA;Zicklin School of Business, Department of Computer Information Systems, Baruch College, City University of New York, New York, NY 10010, USA;Zicklin School of Business, Department of Computer Information Systems, Baruch College, City University of New York, New York, NY 10010, USA

  • Venue:
  • Electronic Commerce Research and Applications
  • Year:
  • 2008

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Abstract

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.