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The Boundaries of the Platform: Vertical Integration and Economic Incentives in Mobile Computing

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Author Info
Boudreau, Kevin
Abstract

Research on the organization of systems industries generally takes the boundaries of platforms to be exogenously-determined artifacts, given by the nature of technology. This paper studies whether platform boundaries are responsive to economic incentives by studying variation in platform boundaries in competing systems in mobile computing. Using detailed descriptive evidence and systematically collected databases of integration patterns, I find that platform boundaries in this industry could be understood as established in response to three primary goals: 1) to consolidate control around assets that conferred the power to regulate production in the system as a whole; 2) to integrate economic activities that risked coordination problems; 3) to open platform boundaries in response to interactions with market competition.

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File URL: http://hdl.handle.net/1721.1/30609
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Paper provided by Massachusetts Institute of Technology (MIT), Sloan School of Management in its series Working papers with number 30609.

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Date of creation: 13 Jan 2006
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Handle: RePEc:mit:sloanp:30609

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Postal: MASSACHUSETTS INSTITUTE OF TECHNOLOGY (MIT), SLOAN SCHOOL OF MANAGEMENT, 50 MEMORIAL DRIVE CAMBRIDGE MASSACHUSETTS 02142 USA

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Keywords: Platforms; systems competition; vertical integration; theory of the firm; information technology;

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