Efficiency and the Provision of Open Platforms

Joacim Tåg

No 748, Working Paper Series from Research Institute of Industrial Economics

Abstract: 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.

Keywords: Platforms; Two-sided Markets; Open versus Closed (search for similar items in EconPapers)
JEL-codes: D40 L10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ict, nep-mic and nep-net
Date: 2008-04-28

Downloads: (external link)
http://www.ifn.se/wfiles/wp/wp748.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hhs:iuiwop:0748

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics
Address: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Contact information at EDIRC.
Series data maintained by Elisabeth Gustafsson ().