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An integrated monopoly, where all complements forming a composite good are offered by a single firm, is typically … competition in the market for each complement. We present a model with two perfect complements and introduce n imperfect … substitutes for one and then for both complements. We prove that, if one complementary good is produced by a monopolist, and if …
Persistent link: https://www.econbiz.de/10008471548
We examine two episodes of strategic interaction in the U.K. betting industry: (i) Betfair (an entrant multi-sided platform, or MSP) vs. Flutter (also an MSP), and (ii) Betfair vs. traditional bookmakers. We find that although Betfair was an underfunded second mover in the betting exchange...
Persistent link: https://www.econbiz.de/10012019905
leader. The reverse is true below this level. This result holds for both substitutes and complements. …
Persistent link: https://www.econbiz.de/10010729848
complementors. We study the interaction between firms in markets with one-way essential complements. One good is essential to the … of surplus between the two goods and the related incentive for firms to create complements to an essential good. Formally …
Persistent link: https://www.econbiz.de/10005762709
A model of interaction between hardware vendors, Intel and AMD, and developers ofWindows and Linux operating systems is suggested. Intel and AMD both maximize profits forming atraditional oligopoly, while Microsoft and the community of Linux developers form a mixedduopoly, in which only the...
Persistent link: https://www.econbiz.de/10008497460
In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to … allow for competition between complements on one side of the market. Consider two complements, A and B, where the A+B bundle …
Persistent link: https://www.econbiz.de/10005622751
Technology platforms, such as Microsoft Windows, are the hubs of technology industries. We develop a framework to characterize the optimal two-sided pricing strategy of a platform firm, that is, the pricing strategy towards the direct users of the platform as well as towards firms offering...
Persistent link: https://www.econbiz.de/10005622760
monopolists, nesting standard models of perfect complements and imperfect substitutes. I show sufficient conditions for a discrete …
Persistent link: https://www.econbiz.de/10010785025
In this paper we study mergers in two-sided industries. While mergers have been studied extensively in traditional industries, and there is a large and rapidly evolving literature on two-sided markets, there has been little work empirically examining mergers in these markets. We present a model...
Persistent link: https://www.econbiz.de/10005835452
This paper examines the pricing of mobile applications when application providers can either supply consumers directly or through a mobile platform (such as a smart phone or tablet). It is demonstrated that when platform access (i.e., purchasing a device) takes place in advance of application...
Persistent link: https://www.econbiz.de/10010574532