Platform Competition and Complementor Responses: Insights from Combining Design Rules with the Comparative Adjustment, Transaction and Opportunity Cost Framework

Open Access
Authors
Publication date 02-2023
Journal Industrial and Corporate Change
Volume | Issue number 32 | 1
Pages (from-to) 112-128
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract Platform owners regularly make decisions regarding whether, when, and how to upgrade their platforms as they compete with other platforms. These decisions must consider how platform complementors and rivals are likely to respond to various changes because a platform suffers in competition when the quantity or quality of its complementors is low. This paper analyzes such interactions in the US videogame industry. We show how a combined design rule-comparative adjustment, transaction, and opportunity cost framework can help to explain and predict these interactions in this industry.

Document type Article
Language English
Published at https://doi.org/10.1093/icc/dtac027
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dtac027 (Final published version)
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