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Collusion in Software Markets

Author

Listed:
  • Francisco Martínez-sánchez

    (University of Murcia)

Abstract

In this paper we analyze firms' ability to tacitly collude on prices in software markets. We show that network externality hinders collusion. We also show that firms collude if they value future profits sufficiently.

Suggested Citation

  • Francisco Martínez-sánchez, 2012. "Collusion in Software Markets," Economics Bulletin, AccessEcon, vol. 32(2), pages 1345-1352.
    • Handle: RePEc:ebl:ecbull:eb-11-00673
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I2-P128.pdf
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    References listed on IDEAS

    as
    1. Paul Belleflamme & Pierre M. Picard, 2007. "Piracy and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(2), pages 351-383, June.
    2. Paul Belleflamme & Martin Peitz, 2010. "Digital Piracy: Theory," CESifo Working Paper Series 3222, CESifo.
    3. Erik Brynjolfsson & Chris F. Kemerer, 1996. "Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market," Management Science, INFORMS, vol. 42(12), pages 1627-1647, December.
    4. Neil Gandal, 1994. "Hedonic Price Indexes for Spreadsheets and an Empirical Test for Network Externalities," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 160-170, Spring.
    5. Chang, Myong-Hun, 1991. "The effects of product differentiation on collusive pricing," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 453-469, September.
    6. Peitz, Martin & Waelbroeck, Patrick, 2006. "Piracy of digital products: A critical review of the theoretical literature," Information Economics and Policy, Elsevier, vol. 18(4), pages 449-476, November.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Romeu, Andrés & Martinez-Sanchez, Francisco, 2015. "Technological Development and Software Piracy," UMUFAE Economics Working Papers 43702, DIGITUM. Universidad de Murcia.

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    More about this item

    Keywords

    Collusion; Network Externality; Software Market;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L4 - Industrial Organization - - Antitrust Issues and Policies

    Statistics

    Access and download statistics

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