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On platforms, incomplete contracts, and open source software

Listed author(s):
  • Niedermayer, Andras
Registered author(s):

    We analyze investment incentives for a firm A owning a software platform and an application and a firm B deciding whether to develop a new application for the platform. While B's entry helps the success of the platform, B fears ex post expropriation by A and is hence reluctant to enter and invest. We show that different platform governance structures prevalent in the Information and Communication Technology industry (integrated, proprietary, standardized, open source platform) serve to balance investment incentives for the platform and for the applications.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167718713000775
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    Article provided by Elsevier in its journal International Journal of Industrial Organization.

    Volume (Year): 31 (2013)
    Issue (Month): 6 ()
    Pages: 714-722

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    Handle: RePEc:eee:indorg:v:31:y:2013:i:6:p:714-722
    DOI: 10.1016/j.ijindorg.2013.07.003
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505551

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