Platform competition in the tablet PC market: The effect of application quality

Thanh Doan, Fabio Manenti () and Franco Mariuzzo
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Thanh Doan: Centre for Competition Policy and School of Economics, University of East Anglia
Franco Mariuzzo: Centre for Competition Policy and School of Economics, University of East Anglia

No 2020-08, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: Apple iOS is a closed platform; Google Android is open. In this paper, we combine data on iOS and Android tablet sales with dat a on the top 1000 mobile applications from both platforms for five European countries and estimate a structural demand model. We find that the quality of applications affects tablet demand. We then run two counterfactuals. In line with our theory, the exclusion of low-quality applications is beneficial to tablet producers in both platforms but is more pronounced for Apple. Tablet producers in the plat form with lower quality applications gain most from cross-platform app interoperability.

Keywords: Android; indirect quality effect; iOS; mobile application; tablet demand (search for similar items in EconPapers)
JEL-codes: L13 L15 L51 L63 (search for similar items in EconPapers)
Date: 2020-12-01
New Economics Papers: this item is included in nep-com, nep-ind and nep-pay
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