Working paper

Ecosystems and Complementary Platforms

Doh-Shin Jeon, Yassine Lefouili, Yaxin Li, and Timothy Simcoe

Abstract

Motivated by several examples, including Internet of Things patent licensing, we develop a tractable model of multi-product ecosystems, where one or more plat- forms provide inputs to a set of devices linked through demand-side externalities. Prices depend on each device's Katz-Bonacich centrality in a network dened by the externalities, and we show how the relevant network diers for an ecosystem monop- olist, a social planner, or a group of complementary platforms. We use the model to revisit Cournot's analysis of complementary monopolies in a platform setting, and to analyze a partial (one-sided) merger of complementary platforms.

Keywords

Multi-sided Market, Complementary Platforms, Network, Centrality,; IoT, Licensing;

Reference

Doh-Shin Jeon, Yassine Lefouili, Yaxin Li, and Timothy Simcoe, Ecosystems and Complementary Platforms, TSE Working Paper, n. 23-1468, September 2023.

See also

Published in

TSE Working Paper, n. 23-1468, September 2023