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e-Book Platform Competition in the Presence of Two-Sided Network Externalities

Yabing Jiang ()
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Yabing Jiang: Lutgert College of Business, Florida Gulf Coast University

No 12-19, Working Papers from NET Institute

Abstract: The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model the direct competition in the e-book platform market through a two-sided network externality model. We show that publishers can influence consumers’ e-book platform adoption decisions and the total e-book sales by strategically deciding the size of contents available on each platform.

Keywords: analytical modeling; e-book technology; network externality; platform competition; product differentiation; two-sided market (search for similar items in EconPapers)
JEL-codes: D43 D62 L11 L13 L82 M15 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-09
New Economics Papers: this item is included in nep-com, nep-cul, nep-ict, nep-mkt and nep-net
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