Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81403
Authors: 
Tåg, Joacim
Year of Publication: 
2008
Series/Report no.: 
IFN Working Paper 747
Abstract: 
This paper studies an industry in which firms can choose to provide open or closed platforms. Open platforms, as opposed to closed, are extendable so third-party producers can develop extensions for them. Building on a two-sided market model, I show that firms might prefer to commit to keeping their platforms closed despite the fact that opening the platform is costless and open platforms are more valuable to consumers. The reason is that opening the platform may lead to intensified competition for consumers.
Subjects: 
Platforms
Software
Two-sided Markets
JEL: 
D40
D42
D43
L10
L12
L13
L14
Document Type: 
Working Paper

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