Platform Competition in the Tablet PC Market: The Effect of Application Quality

40 Pages Posted: 11 Feb 2021 Last revised: 7 Feb 2023

See all articles by Thanh Doan

Thanh Doan

Office of Communications

Fabio M. Manenti

University of Padua - Department of Economics and Management

Franco Mariuzzo

University of East Anglia (UEA) - Centre for Competition Policy

Date Written: February 1, 2023

Abstract

The tablet PC market is dominated by two platforms: iOS and Android. In this paper, we combine tablet-level data with data on the quality of the top 1000 mobile applications from these platforms and estimate a structural demand model. We exploit variations over three periods and five European countries to find whether the application quality affects tablet demand. We then run two counterfactuals. The first counterfactual suggests that an improvement in application quality benefits the tablet producers on that platform with a more pronounced effect on the demand for Android-based tablets. The second counterfactual discusses the policy of leveling the app quality of the two stores. It shows that such a policy favors the tablet producers adopting the lowest quality app store (Google) and stimulates the adoption of tablet PCs. This generates consumer surplus in tablet demand.

Keywords: app quality, Android, iOS, tablet demand

JEL Classification: L13, L15, L51, L63

Suggested Citation

Doan, Thanh and Manenti, Fabio M. and Mariuzzo, Franco, Platform Competition in the Tablet PC Market: The Effect of Application Quality (February 1, 2023). Available at SSRN: https://ssrn.com/abstract=3744115 or http://dx.doi.org/10.2139/ssrn.3744115

Thanh Doan (Contact Author)

Office of Communications ( email )

2a Southwark Bridge Road
London, SE1 9HA
United Kingdom

Fabio M. Manenti

University of Padua - Department of Economics and Management ( email )

via Del Santo 33
Padova, 35123
Italy

Franco Mariuzzo

University of East Anglia (UEA) - Centre for Competition Policy ( email )

UEA
Norwich Research Park
Norwich, Norfolk NR47TJ
United Kingdom

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