Arbeitspapier

Efficiency and the Provision of Open Platforms

Private firms may not have efficient incentives to allow third-party producers to access their platform or develop extensions for their products. Based on a two-sided market model, I discuss two reasons for why. First, a private firm may not be able to internalize all benefits from cross-group externalities arising with third-party extensions. Second, firms may have strategic incentives to shut out third-parties because it relaxes competition.

Language
Englisch

Bibliographic citation
Series: IFN Working Paper ; No. 748

Classification
Wirtschaft
Market Structure, Pricing, and Design: General
Market Structure, Firm Strategy, and Market Performance: General
Subject
Platforms
Two-sided Markets
Open versus Closed
Software
Marktstruktur
Internetbasierter Dienst
Theorie

Event
Geistige Schöpfung
(who)
Tåg, Joacim
Event
Veröffentlichung
(who)
Research Institute of Industrial Economics (IFN)
(where)
Stockholm
(when)
2008

Handle
Last update
10.03.2025, 11:44 AM CET

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Object type

  • Arbeitspapier

Associated

  • Tåg, Joacim
  • Research Institute of Industrial Economics (IFN)

Time of origin

  • 2008

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