English, Article edition: PLATFORM COMPETITION WITH 'MUST-HAVE' COMPONENTS -super-* CHRISTIAAN HOGENDORN; STEPHEN KA YAT YUEN

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Physical Description
  • article
Language
  • English

Edition details

Title
  • PLATFORM COMPETITION WITH 'MUST-HAVE' COMPONENTS -super-*
Author
  • CHRISTIAAN HOGENDORN
  • STEPHEN KA YAT YUEN
Physical Description
  • article
Notes
  • In platform-component systems with indirect network effects, some 'must-have' components are so popular with consumers that they create large, discrete indirect network effects when they become available on a platform. For example, ESPN is a must-have component of cable TV platforms. This paper examines how platform market structures determine exclusive versus non-exclusive contracts between platforms and components. It shows that a component provider is more likely to sign exclusive contracts with a single platform if its popularity is high, the platform market share difference is large, and cross-platform indirect network effects are low. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.
  • RePEc:bla:jindec:v:57:y:2009:i:2:p:294-318
Language
  • English
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