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Multiple Choice
A multihomed customer has which of the following characteristics?
A
They are loyal to a single platform and do not use alternatives.
B
They use multiple competing platforms or products simultaneously.
C
They only purchase goods with zero consumer surplus.
D
They have no willingness to pay for any product.
Verified step by step guidance
1
Step 1: Understand the term 'multihomed customer' in the context of microeconomics and platform markets. A multihomed customer is one who uses multiple platforms or products that serve similar purposes simultaneously.
Step 2: Recognize that loyalty to a single platform contradicts the idea of multihoming, as multihoming involves engaging with more than one platform or product.
Step 3: Analyze the options given: loyalty to a single platform, using multiple competing platforms, purchasing only goods with zero consumer surplus, and having no willingness to pay.
Step 4: Recall that consumer surplus is the difference between what a consumer is willing to pay and what they actually pay, so purchasing only goods with zero consumer surplus is unlikely for a multihomed customer.
Step 5: Conclude that the defining characteristic of a multihomed customer is that they use multiple competing platforms or products simultaneously, which aligns with the correct answer.