Competition significantly impacts acquisition costs in two-sided platforms, often intensifying the struggle to attract and retain users. On these platforms, firms must acquire two distinct user groups, and fierce competition for one side inevitably drives up the incentives needed to attract them. For instance, if multiple ride-sharing apps vie for drivers, they might offer higher bonuses or lower commission rates, directly increasing driver acquisition costs and subsequently affecting rider acquisition strategies. This dynamic creates a bidding war for user attention, requiring platforms to invest more in marketing, subsidies, and promotional offers to stand out. Consequently, competition can lead to an upward spiral in Customer Acquisition Costs (CAC) as platforms strive to build critical mass and leverage network effects, ultimately impacting profitability and market share. More details: https://bsumzug.de/url?q=https://abcname.com.ua