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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 SeriesDate posted: November 13, 2004 ; Last revised: October 10, 2005Suggested CitationContact Information
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