Showing 1 - 10 of 134
In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to … allow for competition between complements on one side of the market. Consider two complements, A and B, where the A+B bundle …
Persistent link: https://www.econbiz.de/10005622751
Technology platforms, such as Microsoft Windows, are the hubs of technology industries. We develop a framework to characterize the optimal two-sided pricing strategy of a platform firm, that is, the pricing strategy towards the direct users of the platform as well as towards firms offering...
Persistent link: https://www.econbiz.de/10005622760
This paper measures the impact of vertically integrated and exclusive software on industry structure and welfare in the … for hardware and software products, and software demand for hardware platforms. I use estimates to simulate market … outcomes had platforms been unable to own or contract exclusively with software. Driven by increased software compatibility …
Persistent link: https://www.econbiz.de/10005585490
This paper investigates the price war in the UK quality newspaper industry in the 1990s. We build a model of the newspaper market which encompasses demand for differentiated products on both, the readers and advertisers side of the market, and profit maximization by four competing oligopolistic...
Persistent link: https://www.econbiz.de/10008525325
Theories of multi-sided markets suggest that a platform’s pricing strategies on different sides of the market are closely linked, and in particular, an increase in competition on one side may lead to an increase in price on other sides. We empirically examine platforms’ pricing strategies by...
Persistent link: https://www.econbiz.de/10008673515
Proper configuration of security technologies is critical to balance the access and protection requirements of information. The common practice of using a layered security architecture that has multiple technologies amplifies the need for proper configuration because the configuration decision...
Persistent link: https://www.econbiz.de/10005585488
In this paper I study how innovation investment in a software duopoly is affected by the fact that one of the firms is … technological levels. An OS firm is a for profit organization whose basic software is OS and it is distributed for free. The OS firm …, however, is able to make profits from selling complementary software and, on the cost side, it receives development help from …
Persistent link: https://www.econbiz.de/10008479200
As online information availability for products and services is increasing and as buyers engage in more online search prior to purchase decisions, it is becoming more important for firms to know when to invest to reduce buyer uncertainty. This article argues that today's firms should view...
Persistent link: https://www.econbiz.de/10010905465
We analyze a duopoly game in which products are initially differentiated in variety and quality. Each consumer has a most preferred variety and a quality valuation. Customization provides ideal varieties but has no effect on product qualities. The firms first choose whether to customize their...
Persistent link: https://www.econbiz.de/10005760654
This paper provides a thorough analysis of oligopolistic markets with positive demand-side network externalities and perfect compatibility. The minimal structure imposed on the model primitives is such that industry output increases in a firm's rivals' total output as well as in the expected...
Persistent link: https://www.econbiz.de/10008460518