Vertical Integration and Exclusivity in Platform and Two-Sided Markets.

This paper measures the impact of vertically integrated and exclusive software on industry structure and welfare in the sixth-generation of the US video game industry (2000-2005). I specify and estimate a dynamic model of both consumer demand for hardware and software products, and software demand f...

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Publicado en:American Economic Review Vol. 103; no. 7; pp. 2960 - 3001
Autor principal: Lee, Robin S
Formato: Artículo
Publicado: American Economic Association Dec2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec2013
      vid: 103
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      pub: American Economic Association
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        10.1257/aer.103.7.2960
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        atl: Vertical Integration and Exclusivity in Platform and Two-Sided Markets.
      aug:
        au: Lee, Robin S
        affil: a1
      su:
        NPD Group Inc.
        Consumption (Economics)
        Consumer preferences
        Video game industry
        Computer software
        Sales
        Software compatibility
        Computer input-output equipment
      sug:
        subj:
          Consumption (Economics)
          Consumer preferences
          NPD Group Inc.
          Computer and peripheral equipment manufacturing
          Computer Terminal and Other Computer Peripheral Equipment Manufacturing
          Software publishers (except video game publishers)
          Computer and software stores
          Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
          Computer, computer peripheral and pre-packaged software merchant wholesalers
          Video game publishers
          Video game design and development services
          Home entertainment equipment merchant wholesalers
          Doll, Toy, and Game Manufacturing
          Video game industry
          Computer software
          Sales
          Software compatibility
          Computer input-output equipment
      ab: This paper measures the impact of vertically integrated and exclusive software on industry structure and welfare in the sixth-generation of the US video game industry (2000-2005). I specify and estimate a dynamic model of both consumer demand for hardware and software products, and software demand for hardware platforms. I use estimates to simulate market outcomes had platforms been unable to own or contract exclusively with software. Driven by increased software compatibility, hardware and software sales would have increased by 7 percent and 58 percent and consumer welfare by $1.5 billion. Gains would be realized only by the incumbent, suggesting exclusivity favored the entrant platforms. (JEL D12, L13, L22, L63, L86)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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