Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81510
Authors: 
Tåg, Joacim
Year of Publication: 
2008
Series/Report no.: 
IFN Working Paper 748
Abstract: 
Private firms may not have efficient incentives to allow third-party producers to access their platform or develop extensions for their products. Based on a two-sided market model, I discuss two reasons for why. First, a private firm may not be able to internalize all benefits from cross-group externalities arising with third-party extensions. Second, firms may have strategic incentives to shut out third-parties because it relaxes competition.
Subjects: 
Platforms
Two-sided Markets
Open versus Closed
JEL: 
D40
L10
Document Type: 
Working Paper

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