Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Monday, June 16, 2008

Efficiency and the Provision of Open Platforms

Posted by D. Daniel Sokol

A paper on an important topic is Efficiency and the Provision of Open Platforms by Joacim Tag, Swedish School of Economics and Business Administration - Department of Economics, Helsinki Center of Economic Research (HECER).

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.

http://lawprofessors.typepad.com/antitrustprof_blog/2008/06/efficiency-and.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00e5536844158834

Listed below are links to weblogs that reference Efficiency and the Provision of Open Platforms:

Comments

Post a comment