We present a fairly general model in which firms are competitors in a commercial market segment and can invest into a complementary public good like open source software. We show that, contrary to standard predictions, additional contribution to the public good by the government or a new market...

The existing literature on two-sided markets addresses participation externalities, but it has neglected pecuniary externalities between platforms. In this paper we build a model that incorporates both externalities. In our set-up, differentiated platforms compete in advertising levels and offer...

"This paper analyzes a duopoly model with stochastic demand in which firms first commit to a strategy variable and compete afterwards. We find that in equilibrium the relative magnitude of demand uncertainty and the degree of substitutability determines firms' variable choice. Firms set prices...