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Jeon, Doh-Shin
and Rey, Patrick
(2024)
Platform Competition and App Development.
TSE Working Paper, n. 24-1566, Toulouse
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Abstract
We study the development of apps on competing platforms. We show that competition leads to commissions exceeding those maximizing consumer surplus (and, a fortiori, social welfare) whenever raising one commission reduces rivals' app bases. We relate this nding to economies of scope in app development and, to illustrate it, consider a setting in which some developers can port their apps at no cost: as their proportion increases, app development is progressively choked-o. Fostering platform competition or interoperability may therefore fail to produce the desired results. Within-platform app store competition, together with appropriate access conditions, may constitute a more promising avenue.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | French |
| Date: | September 2024 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Platform competition, ad-valorem commissions, app stores, app development |
| JEL Classification: | D21 - Firm Behavior D43 - Oligopoly and Other Forms of Market Imperfection L13 - Oligopoly and Other Imperfect Markets L22 - Firm Organization and Market Structure - Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries L40 - General L50 - General L81 - Retail and Wholesale Trade; Warehousing; e-Commerce |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 12 Sep 2024 07:15 |
| Last Modified: | 12 Sep 2024 07:15 |
| OAI Identifier: | oai:tse-fr.eu:129700 |
| URI: | https://publications.ut-capitole.fr/id/eprint/49676 |
