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A Survey of the Economic Role of Software Platforms in Computer-based Industries

Author

Listed:
  • David S. Evans
  • Andrei Hagiu
  • Richard Schmalensee

Abstract

Software platforms are a critical component of the computer systems underpinning leading-edge products ranging from third-generation mobile phones to video games. After describing some key economic features of computer systems and software platforms, the paper presents case studies of personal computers, video games, personal digital assistants, smart mobile phones, and digital content devices. It then compares several economic aspects of these businesses including their industry evolution, pricing structures, and degrees of integration. (JEL L86, L11, L15)

Suggested Citation

  • David S. Evans & Andrei Hagiu & Richard Schmalensee, 2005. "A Survey of the Economic Role of Software Platforms in Computer-based Industries," CESifo Economic Studies, CESifo Group, vol. 51(2-3), pages 189-224.
    • Handle: RePEc:oup:cesifo:v:51:y:2005:i:2-3:p:189-224.
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    File URL: http://hdl.handle.net/10.1093/cesifo/51.2-3.189
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    Citations

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    Cited by:

    1. Michael Vogelsang, 2010. "Dynamics of two-sided internet markets," International Economics and Economic Policy, Springer, vol. 7(1), pages 129-145, May.
    2. Maria J. Gil-Moltó, 2010. "Economic Aspects of the Microsoft Case: Networks, Interoperability and Competition," Chapters, in: Luca Rubini (ed.), Microsoft on Trial, chapter 11, Edward Elgar Publishing.
    3. Andrei Hagiu, 2004. "Two-Sided Platforms: Pricing and Social Efficiency," Discussion papers 04035, Research Institute of Economy, Trade and Industry (RIETI).
    4. Kevin Boudreau, 2010. "Open Platform Strategies and Innovation: Granting Access vs. Devolving Control," Management Science, INFORMS, vol. 56(10), pages 1849-1872, October.
    5. Dietl Helmut & Duschl Tobias & Franck Egon & Lang Markus, 2012. "A Contest Model of a Professional Sports League with Two-Sided Markets," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 336-359, June.
    6. David S. Evans & Richard Schmalensee, 2005. "The economics of interchange fees and their regulation : an overview," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City, issue May, pages 73-120.
    7. Paul Belleflamme & Eric Toulemonde, 2009. "Negative Intra-Group Externalities In Two-Sided Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 245-272, February.
    8. Niedermayer, Andreas, 2015. "Does a Platform Monopolist Want Competition?," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 523, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    9. repec:hrv:faseco:4589709 is not listed on IDEAS
    10. Kim, Dohoon, 2016. "Value ecosystem models for social media services," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 13-27.
    11. Stefan Behringer, 2014. "Network Effects, Spillovers and Market Structure," Manchester School, University of Manchester, vol. 82(2), pages 143-159, March.
    12. Herbert Dawid & Reinhold Decker & Thomas Hermann & Hermann Jahnke & Wilhelm Klat & Rolf König & Christian Stummer, 2017. "Management science in the era of smart consumer products: challenges and research perspectives," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(1), pages 203-230, March.
    13. Attila Ambrus & Rossella Argenziano, 2009. "Asymmetric Networks in Two-Sided Markets," American Economic Journal: Microeconomics, American Economic Association, vol. 1(1), pages 17-52, February.
    14. Oliver Budzinski & Annika Stöhr, 2019. "Competition policy reform in Europe and Germany – institutional change in the light of digitization," European Competition Journal, Taylor & Francis Journals, vol. 15(1), pages 15-54, January.
    15. Andras Niedermayer, 2006. "Does a Platform Monopolist Want Competition?," Diskussionsschriften dp0604, Universitaet Bern, Departement Volkswirtschaft.
    16. Niedermayer Andras, 2015. "Does a Platform Monopolist Want Competition?," Review of Network Economics, De Gruyter, vol. 14(1), pages 1-44, March.
    17. Ge, Chunmian & Huang, Ke-Wei & Kankanhalli, Atreyi, 2020. "Platform skills and the value of new hires in the software industry," Research Policy, Elsevier, vol. 49(1).
    18. Peters, Frank, 2018. "The business of video games is a multi-player game : Essays on governance choices and performance in a two-sided market in the cultural industries," Other publications TiSEM 886b3148-4bbb-4ea4-b666-0, Tilburg University, School of Economics and Management.
    19. Viecens, María Fernanda, 2006. "Two-sided platforms with endogenous quality differentiation," UC3M Working papers. Economics we061204, Universidad Carlos III de Madrid. Departamento de Economía.
    20. Kalm, Matias & Seppälä, Timo & Ali-Yrkkö, Jyrki, 2014. "Extracting Value through Technology and Service Platforms: The Case of Licensing, Services and Royalties," ETLA Brief 21, The Research Institute of the Finnish Economy.
    21. Kevin Boudreau, 2005. "The Boundaries of the Platform: Vertical Integration and Economic Incentives in Mobile Computing," Working Papers hal-00597767, HAL.
    22. Andras Niedermayer, 2005. "Does a Platform Owning Monopolist Want Competition?," Diskussionsschriften dp0517, Universitaet Bern, Departement Volkswirtschaft.

    More about this item

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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