We study compatibility decisions of two competing platform owners that generate profits through both hardware sales and royalties from content sales. We consider a game-theoretic model in which two platforms offer different standalone utilities to users. We find that incentives to establish...

We examine how heterogeneity in customers' multi-homing tendencies affects a platform's response to new entrants in its market. We develop a formal model to generate empirical predictions and then test them leveraging a historical setting: TV broadcast station entry into local newspaper markets...