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- W3121818261 abstract "This paper investigates the scope of indirect network effects in the home video game industry. We argue that the increasing prevalence of non-exclusive software gives rise to indirect network effects that exist between users of competing and incompatible hardware platforms. This is because software non-exclusivity, like hardware compatibility, allows a software firm to sell to a market broader than a single platform's installed base. We look for evidence of market-wide network effects by estimating a model of hardware demand and software supply. Our software supply equation allows the supply of games for a particular platform to depend not only on the installed base of that platform, but also on the installed base of competing platforms. Our results indicate the presence of both a platform-specific network effect and—in recent years—a cross-platform (or generation-wide) network effect. Our finding that the scope of indirect network effects in this industry has widened suggests one reason that this market, which is often cited as a canonical example of one with strong indirect network effects, is no longer dominated by a single platform." @default.
- W3121818261 created "2021-02-01" @default.
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- W3121818261 date "2009-03-01" @default.
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- W3121818261 title "Software exclusivity and the scope of indirect network effects in the U.S. home video game market" @default.
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- W3121818261 doi "https://doi.org/10.1016/j.ijindorg.2008.08.002" @default.
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