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Platform interoperability is considered a powerful tool to promote competition in digital markets when network effects … are at play. We study the effect of interoperability on competition between two ad-financed platforms, allowing for … interoperability, interoperability emerges in equilibrium if the value of multi-homers relative to single-homers is sufficiently low …
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The recent years have exhibited a burst in the amount of collaborative activities among firms selling complementary products. This paper aims at providing a rationale for such a large extent of collaboration ties among complementors. To this end, we analyze a game in which the two producers of a...
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power of incumbents, although the development of interoperability in some countries has had a positive impact. The findings …
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