Chowdhury, S.M. and Martin, S. orcid.org/0000-0002-2780-9358 (2017) Exclusivity and exclusion on platform markets. Journal of Economics, 120 (2). pp. 95-118. ISSN 0931-8658
Abstract
We examine conditions under which an exclusive license granted by the upstream producer of a component that some consumers regard as essential to one of two potential suppliers of a downstream platform market can make the unlicensed supplier unprofitable, although both firms would be profitable if both were licensed. If downstream varieties are close substitutes, an exclusive license need not be exclusionary. If downstream varieties are highly differentiated, an exclusive license is exclusionary, but it is not in the interest of the upstream firm to grant an exclusive license. For intermediate levels of product differentiation, an exclusive license is exclusionary and maximizes the upstream firm’s payoff.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Springer-Verlag Wien 2016. This is an author-produced version of a paper subsequently published in Journal of Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Exclusion; Essential components; Exclusive contract; Platform market |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 01 Jun 2023 15:05 |
Last Modified: | 02 Jun 2023 02:04 |
Status: | Published |
Publisher: | Springer Science and Business Media LLC |
Refereed: | Yes |
Identification Number: | 10.1007/s00712-016-0499-z |
Related URLs: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:199704 |