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Platform competition in the tablet PC market: The effect of application quality

Author

Listed:
  • Thanh Doan

    (Centre for Competition Policy and School of Economics, University of East Anglia)

  • Fabio Maria Manenti

    (Department of Economics and Management, University of Padua)

  • Franco Mariuzzo

    (Centre for Competition Policy and School of Economics, University of East Anglia)

Abstract

Apple iOS is a closed platform; Google Android is open. In this paper, we combine data on iOS and Android tablet sales with dat a on the top 1000 mobile applications from both platforms for five European countries and estimate a structural demand model. We find that the quality of applications affects tablet demand. We then run two counterfactuals. In line with our theory, the exclusion of low-quality applications is beneficial to tablet producers in both platforms but is more pronounced for Apple. Tablet producers in the plat form with lower quality applications gain most from cross-platform app interoperability.

Suggested Citation

  • Thanh Doan & Fabio Maria Manenti & Franco Mariuzzo, 2020. "Platform competition in the tablet PC market: The effect of application quality," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2020-08, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaccp:2020_08
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Android; indirect quality effect; iOS; mobile application; tablet demand;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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