Antitrust & Competition Policy Blog

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

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Friday, December 14, 2012

e-Book Platform Competition in the Presence of Two-Sided Network Externalities

Posted by D. Daniel Sokol

Yabing Jiang (Lutgert College of Business, Florida Gulf Coast University) discusses e-Book Platform Competition in the Presence of Two-Sided Network Externalities.

ABSTRACT: The success of the Kindle e-book platform and the increased popularity of e-books among members of the reading community have attracted extensive interest in the high-tech industry. New platform providers are jumping in the market to compete for device and e-book sales. In this paper, we model the direct competition in the e-book platform market through a two-sided network externality model. We show that publishers can influence consumers’ e-book platform adoption decisions and the total e-book sales by strategically deciding the size of contents available on each platform.

http://lawprofessors.typepad.com/antitrustprof_blog/2012/12/e-book-platform-competition-in-the-presence-of-two-sided-network-externalities.html

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