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Content provision and compatibility in a platform market

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Listed:
  • Rasch, Alexander
  • Wenzel, Tobias

Abstract

This paper studies the ambiguous welfare effects of compatibility in a platform market with endogenous content provision. Compatibility can be particularly harmful if it leads to reduced content but can be beneficial if content is sufficiently increased.

Suggested Citation

  • Rasch, Alexander & Wenzel, Tobias, 2014. "Content provision and compatibility in a platform market," Economics Letters, Elsevier, vol. 124(3), pages 478-481.
    • Handle: RePEc:eee:ecolet:v:124:y:2014:i:3:p:478-481
    DOI: 10.1016/j.econlet.2014.07.012
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    References listed on IDEAS

    as
    1. Doganoglu, Toker & Wright, Julian, 2006. "Multihoming and compatibility," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 45-67, January.
    2. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    3. Miao Chun-Hui, 2009. "Limiting Compatibility in Two-sided Markets," Review of Network Economics, De Gruyter, vol. 8(4), pages 1-19, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Maruyama, Masayoshi & Zennyo, Yusuke, 2015. "Application compatibility and affiliation in two-sided markets," Economics Letters, Elsevier, vol. 130(C), pages 39-42.
    2. Ding, Rong & Ko, Chiu Yu & Shen, Bo, 2022. "Partial compatibility in two-sided markets: Equilibrium and welfare analysis," Economic Modelling, Elsevier, vol. 116(C).
    3. Chung‐Hui Chou, 2021. "Could coexistence of open‐source and proprietary platforms be an equilibrium outcome?," Manchester School, University of Manchester, vol. 89(3), pages 297-309, June.
    4. Gold, Alex & Hogendorn, Christiaan, 2016. "Tipping in two-sided markets with asymmetric platforms," Economic Analysis and Policy, Elsevier, vol. 50(C), pages 85-90.
    5. Zennyo, Yusuke, 2020. "Freemium competition among ad-sponsored platforms," Information Economics and Policy, Elsevier, vol. 50(C).

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    More about this item

    Keywords

    Compatibility; Content creation; Platform; Standard; Two-sided market;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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