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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 studies the impact of heterogeneity in interdependence of trader values on price inference and welfare. A model of double auction with quasilinear-quadratic utilities is introduced that allows for arbitrary Gaussian information structures. With heterogeneous interdependence, some...
Persistent link: https://www.econbiz.de/10010698671
oligopoly without the unrealistic restrictions typically imposed for tractability and to demonstrate that the fundamental …
Persistent link: https://www.econbiz.de/10008684462
This paper investigates the patent licensing networks formed by competing firms. Assuming that licensing agreements can … of independent patents, we fully characterize the bilaterally efficient networks and find that when the cost reduction … efficient one. We also show that the bilaterally efficient networks can be sustained as subgame-perfect Nash equilibria with …
Persistent link: https://www.econbiz.de/10010933642
I examine interconnection decisions of differentiated firms. I find that previous results that firms never interconnect enough do not hold. In a Hotelling model consumers may suffer from interconnection, and firms may interconnect when it is not socially optimal. The firms interconnect too much...
Persistent link: https://www.econbiz.de/10005585467
We study duopoly pricing in the market for mobile phone service, which features network externalities, switching costs, and consumer heterogeneity. We introduce a steady state approach that enables a tractable analysis without endgame effects. The model can generate a variety of testable...
Persistent link: https://www.econbiz.de/10008679199
The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model...
Persistent link: https://www.econbiz.de/10010905457
In this paper, we study how the presence of a news aggregator affects competition among (horizontally differentiated) newspapers in the Internet. For this purpose, we build a model of multiple issues which allows each newspaper to choose quality on each issue. Our model provides a micro...
Persistent link: https://www.econbiz.de/10010905459
We consider a heretofore unexplored explanation for why platforms, such as Internet service providers, might impose download limits on content consumers: doing so increases the degree to which those consumers view content providers’ products as substitutes. This, in turn, intensifies the...
Persistent link: https://www.econbiz.de/10010905461
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