2011 Fiscal Year Final Research Report
Economic Analysis on Business Platform Strategy and Competition
| Project/Area Number |
20530222
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Applied economics
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| Research Institution | Nanzan University |
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Principal Investigator |
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| Co-Investigator(Kenkyū-buntansha) |
MARUYAMA Masayoshi 神戸大学, 経営学研究科, 教授 (60135928)
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| Project Period (FY) |
2008 – 2011
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| Keywords | プラットフォーム / 競争戦略 |
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| Research Abstract |
We constructed a theoretical model of competition and mergers among two-sided market platforms in a framework with two-sided network externalities and complementarity. Using these models, we established the results that a complementary merger provides products of higher quality, and achieves higher market coverage, higher profits and higher consumer surplus than independent ownership. We examined the relationship between product life cycle and platform compatibility and found that compatibility matters less if there is a small valuation of hardware in consumer's utility function. We investigated empirically the factors determining the developers' choices of video game platforms from 1994 to 1996 by estimating the mixed logit model. Our results have important implications for video game, broadband and eBook reader markets.
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