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

David S. Evans
University College London; University of Chicago Law School

Richard Schmalensee
Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Andrei Hagiu
Harvard Business School - Strategy Unit


October 2004

CESifo Working Paper Series No. 1314

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.

Keywords: software platforms, hardware platforms, network effects, bundling, multi-sided markets

JEL Classifications: L11, L15, L8

Working Paper Series

Date posted: November 13, 2004 ; Last revised: October 10, 2005

Suggested Citation

Evans, David S., Schmalensee, Richard and Hagiu, Andrei, A Survey of the Economic Role of Software Platforms in Computer-Based Industries (October 2004). CESifo Working Paper Series No. 1314. Available at SSRN: http://ssrn.com/abstract=618982


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Contact Information

David S. Evans (Contact Author)
University College London ( email )
London WC1E OEG United Kingdom
HOME PAGE: http://www.ucl.ac.uk/laws/current/graduate/courses/competition-regulation/economics/index.shtml
University of Chicago Law School ( email )
1111 E. 60th St.
Chicago, IL 60637
United States
Andrei Hagiu
Harvard Business School - Strategy Unit ( email )
Harvard Business School
Soldiers Field Road
Boston, MA 02163
United States
617-496-6745 (Phone)
Richard Schmalensee
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
Room E52-410
Cambridge, MA 02142
United States
617-253-2957 (Phone)
617-258-6617 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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References: 38
Citations: 8

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