Platform Performance Investment in the Presence of Network Externalities

Published Online:https://doi.org/10.1287/isre.2013.0505

References

  • Allen D (2006) First look: Sony PS3 versus Nintendo Wii. PCWorld (Nov. 14), http://www.pcworld.com/article/127881/article.html.Google Scholar
  • Anderson S, Coate S (2005) Market provision of broadcasting: A welfare analysis. Rev. Econom. Stud. 72:947–972.CrossrefGoogle Scholar
  • Armstrong M (2002) The theory of access pricing and interconnection. Cave M, Majumdar S, Vogelsang I, eds. Handbook of Telecommunications Economics Vol. I (North Holland, Amsterdam), 295–384.Google Scholar
  • Armstrong M (2006) Competition in two-sided markets. RAND J. Econom. 37(3):668–691.CrossrefGoogle Scholar
  • Armstrong M, Wright J (2007) Two-sided markets, competitive bottlenecks and exclusive contracts. Econom. Theory 32:353–380.CrossrefGoogle Scholar
  • Armstrong M, Wright J (2009) Mobile call termination. Econom. J. 119:270–307.Google Scholar
  • Arthur B (1989) Competing technologies, increasing returns, and lock-in by historical events. Econom. J. 99(March):116–131.Google Scholar
  • Basu A, Mazumdar T, Raj SP (2003) Indirect network externality effects on product attributes. Marketing Sci. 22(2):209–221.LinkGoogle Scholar
  • Bhargava HK, Choudhary V (2004) Economics of an information intermediary with aggregation benefits. Inform. Systems Res. 15(1):22–36.LinkGoogle Scholar
  • Boudreau KJ, Hagiu A (2009) Platform rules: Multi-sided platforms as regulators. Gawer A, ed. Platforms, Markets and Innovation (Edward Elgar, London), 163–191.CrossrefGoogle Scholar
  • Boyer B (2006) isuppli: PS3 sold at $300 loss on hardware components. Retrieved November 16, 2006, http://www.gamasutra.com/php-bin/news_index.php?story=1174.Google Scholar
  • Brooks FP (1975) The Mythical Man-Month, Vol. 79 (Addison-Wesley, Reading, MA).CrossrefGoogle Scholar
  • Caillaud B, Jullien B (2003) Chicken and egg: Competition among intermediation service providers. RAND J. Econom. 34(2):309–328.CrossrefGoogle Scholar
  • Casual Games Association (2007) Casual Games Market Report 2007. Retrieved January 15, 2009, https://dl.dropboxusercontent.com/u/3698805/Reports/CasualGamesMarketReport-2007.pdf.Google Scholar
  • Chintagunta PK, Nair HS, Sukumar R (2009) Measuring marketing-mix effects in the 32/64 bit video-game console market. J. Appl. Econometrics 24(3):421–445.CrossrefGoogle Scholar
  • Choi JP (1994) Network externality, compatibility choice, and planned obsolescence. J. Indust. Econom. 42(2):167–182.CrossrefGoogle Scholar
  • Clements MT, Ohashi H (2005) Indirect network effects and the product cycle: Video games in the U.S. J. Indust. Econom. 53(4):515–542.CrossrefGoogle Scholar
  • Corts K, Lederman M (2009) Software exclusivity and the scope of indirect network effects in the U.S. home video game market. Internat. J. Indust. Organ. 27:121–136.CrossrefGoogle Scholar
  • Cusumano M (2010) Technology strategy and management: the evolution of platform thinking. Comm. ACM 53(1):32–34.CrossrefGoogle Scholar
  • de Froberville D (2008) Phone interview by Edward Anderson and Geoffrey Parker. Video game project management. November 28, 2008.Google Scholar
  • Dutka B (2009) Do multiplatform games affect console sales? PSXExtreme (June 4), http://www.psxextreme.com/feature/410.html.Google Scholar
  • Eisenmann TR, Parker G, Van Alstyne M (2006) Strategies for two-sided markets. Harvard Bus. Rev. 84(10):92–101.Google Scholar
  • Eisenmann TR, Parker G, Van Alstyne M (2011) Platform envelopment. Strategic Management J. 32(12):1270–1285.CrossrefGoogle Scholar
  • Farrell J, Saloner G (1985) Standardization, compatibility, and innovation. RAND J. Econom. 16:70–83.CrossrefGoogle Scholar
  • Farrell J, Saloner G (1986) Installed base and compatibility: Innovation, product preannouncements, and predation. Amer. Econom. Rev. 76:940–955.Google Scholar
  • Gandal N, Kende M, Rob R (2000) The dynamics of technological adoption in hardware/software systems: The case of compact disc players. RAND J. Econom. 31(1):43–61.CrossrefGoogle Scholar
  • Gawer A, Cusumano M (2002) Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation (Harvard Business School Publishing, Boston).Google Scholar
  • Gawer A, Cusumano MA (2008) How companies become platform leaders. MIT Sloan Management Rev. 49(2):28–35.Google Scholar
  • Green PE, Srinivasan V (1990) Conjoint analysis in marketing: New developments with implications for research and practice. J. Marketing 54(4):3–19.CrossrefGoogle Scholar
  • Gretz R (2010) Hardware quality vs. network size in the home video game industry. J. Econom. Behav. Organ. 76:168–183.CrossrefGoogle Scholar
  • Hagiu A (2006) Pricing and commitment by two-sided platforms. RAND J. Econom. 37(3):720–737.CrossrefGoogle Scholar
  • Hasseldahl A (2005) Microsoft's red-ink game. BusinessWeek.com (November 22), http://www.businessweek.com/technology/content/nov2005/tc20051122_410710.htm.Google Scholar
  • Jones SR, Zsidisin GA (2008) Performance implications of product life cycle extension: The case of the A-10 aircraft. J. Bus. Logist. 29(2):189–214.CrossrefGoogle Scholar
  • Kaiser U, Wright J (2006) Price structure in two-sided markets: Evidence from the magazine industry. Internat. J. Indust. Organ. 24:1–28.CrossrefGoogle Scholar
  • Katz ML, Shapiro C (1985) Network externalities, competition, and compatibility. Amer. Econom. Rev. 75(3):424–440.Google Scholar
  • Katz ML, Shapiro C (1986a) Technology adoption in the presence of network externalities. J. Political Econom. 94:823–841.CrossrefGoogle Scholar
  • Katz ML, Shapiro C (1986b) Product compatibility choice in a market with technological progress. Oxford Econom. Papers, Special Issue 38:146–165.CrossrefGoogle Scholar
  • Katz ML, Shapiro C (1994) Systems competition and network effects. J. Econom. Perspect. 8(2):93–115.CrossrefGoogle Scholar
  • Kim R (2007) Wii need more games. Developers push to meet demand on popular box. San Francisco Chronicle (May 18), http://www.sfgate.com/business/article/Wii-needs-more-games-Developers-push-to-meet-2593328.php.Google Scholar
  • Krishnan V, Ulrich KT (2001) Product development decisions: A review of the literature. Management Sci. 47(1):1–21.LinkGoogle Scholar
  • Kristiansen EG (1998) R&D in the presence of network externalities: Timing and compatibility. RAND J. Econom. 29(3):531–547.CrossrefGoogle Scholar
  • Leheng Q (2006) Wii development costs a quarter to half compared to PS3/360. TechGate (August 11), http://tech.commongate.com/.Google Scholar
  • Liebowitz SJ, Margolis SE (1994) Network externality: An uncommon tragedy. J. Econom. Perspect. 8(2):133–150.CrossrefGoogle Scholar
  • Mussa M, Rosen S (1978) Monopoly and product quality. J. Econom. Theory 18:301–317.CrossrefGoogle Scholar
  • Nair H, Chintagunta P, Dube JP (2004) Empirical analysis of indirect network effects in the market for personal digital assistants. Quant. Marketing Econom. 2(1):23–58.CrossrefGoogle Scholar
  • Parker G, Van Alstyne M (2000a) Information complements, substitutes, and strategic product design. Mimeo; Tulane University, LA; and University of Michigan, Ann Arbor.Google Scholar
  • Parker G, Van Alstyne M (2000b) Internetwork externalities and free information goods. Proc. 2nd ACM Conf. Electronic Commerce (ACM, New York), 107–116.CrossrefGoogle Scholar
  • Parker G, Van Alstyne M (2005) Two-sided network effects: A theory of information product design. Management Sci. 51(10):1494–1504.LinkGoogle Scholar
  • Parker G, Van Alstyne M (2009) Six challenges in platform licensing and open innovation. Comm. Amp; Strategies (74):17–36.Google Scholar
  • Parker G, Van Alstyne M (2012) A digital postal platform: Definitions and a roadmap. Technical report, MIT, Cambridge, MA.Google Scholar
  • Parker G, Van Alstyne M (2013) Innovation, openness and platform control (August 4), http://ssrn.com/abstract=1079712.Google Scholar
  • Papalambros PY (1995) Optimal design of mechanical engineering systems. J. Mech. Design 117(B):55–62.CrossrefGoogle Scholar
  • Rochet JC, Tirole J (2003) Platform competition in two-sided markets. J. Eur. Econom. Assoc. 1(4):990–1029.CrossrefGoogle Scholar
  • Rochet JC, Tirole J (2006) Two-sided markets: A progress report. RAND J. Econom. 37(3):645–667.CrossrefGoogle Scholar
  • Schoenberger CR (2008) Wii's future in motion. Forbes (December 1), http://www.forbes.com/2008/11/28/nintendo-wii-wii2-tech-personal-cz-cs-1201wii.html.Google Scholar
  • Shane SA, Ulrich KT (2004) Technological innovation, product development, and entrepreneurship in management science. Management Sci. 50(2):133–144.LinkGoogle Scholar
  • Sheffield B (2008) The graphics plateau. Game Developer 15(7):2.Google Scholar
  • Sinclair B (2006) Wii dev costs fraction of PS3's, 360's. Gamespot (May 5), http://www.gamespot.com/.Google Scholar
  • Srinivasan A, Venkatraman N (2010) Indirect network effects and platform dominance in the video game industry: A network perspective. IIEE Trans. Engrg. Management 57(4):661–673.CrossrefGoogle Scholar
  • Thomke S (1999) Project Dreamcast: Serious play at Sega Enterproses Ltd. (A). Harvard Business School, case study N9-600-028.Google Scholar
  • Tirpak JA (2007) Making the best of the fighter force. Air Force Magazine 90(3):40–45.Google Scholar
  • Tiwana A, Konsynski B, Bush A (2010) Platform evolution: Coevolution of platform architecture, governance, and environmental dynamics. Internat. Statist. Rev. 21(4):675–687.Google Scholar
  • van der Rhee B, Schmidt G, Tsai W (2007) Steepen, maintain, or flatten the performance treadmill? Working paper, Nyenrode Business University, Breukelen, The Netherlands, David Eccles School of Business, University of Utah, Salt Lake City.Google Scholar
  • VG Chartz Game Database (2009) Video console market share. Retrieved January 15, 2009, http://www.vgchartz.com/gamedb/?name=&publisher=&platform=Wii&genre=&minSales=0&results=200.Google Scholar
  • Wen H (2007) Analyze this: Are game publishers late to the (Wii and DS) game? Gamasutra (June 23, 2013) http://www.gamasutra.com/view/feature/130086/analyze_this_are_game_publishers_.php?print=1.Google Scholar
  • Wesley D, Barczak G (2010) Innovation and Marketing in the Video Game Industry: Avoiding the Performance Trap (Gower Publishing Ltd., UK).Google Scholar
  • Zhu F, Iansiti M (2011) Entry into platform-based markets. Strategic Management J. 33(1):88–106.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.