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Platform Competition,Compatibility,and Social Efficiency
Network Effects One-Sided Platforms Two-Sided Platforms Competition
2015/4/21
Katz and Shapiro (1985) study systems compatibility in settings with one-sided plat- forms and direct network effects. We consider systems compatibility in settings with two-sided platforms and indire...
Proprietary vs. Open Two-Sided Platforms and Social Efficiency
Two-Sided Markets Platforms Indirect Network Effects Product Variety Social Efficiency Two-Sided Platforms
2015/4/21
This paper identifies a fundamental economic welfare tradeoff between two-sided open platforms and two-sided proprietary (closed) platforms connecting consumers and producers. Proprietary platforms cr...