This paper proposes methods for identifying indirect network effects with dynamically optimizing consumers purchasing a durable hardware good and associated software. We apply this model to a data drawn from the DVD player and titles markets. We observe model-level prices, sales and...

Recent theoretical research on the implications of two-sided markets is gaining recognition for its implications in antitrust. However, the role of empirical analysis in antitrust cases for two-sided markets has been unexplored thus far. Empirical tools of economics are playing an increasingly...