• Corpus ID: 33240943

. 209 Open Versus Closed Platforms *

  title={. 209 Open Versus Closed Platforms *},
  author={Joacim T{\aa}g},
This paper studies an industry in which rms can choose to provide open or closed platforms. Open platforms, as opposed to closed, are extendable so third-party producers can develop extensions for them. Building on a two-sided market model, I show that rms might prefer to commit to keeping their platforms closed despite the fact that opening the platform is costless and open platforms are more valuable to consumers. The reason is that opening the platform may lead to intensi ed competition for… 

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