Technological tying and the intensity of price competition: An empirical analysis of the video game industry
@article{Derdenger2014TechnologicalTA, title={Technological tying and the intensity of price competition: An empirical analysis of the video game industry}, author={Timothy P. Derdenger}, journal={Quantitative Marketing and Economics}, year={2014}, volume={12}, pages={127-165} }
Using data from the 128-bit video game industry I evaluate the impact technologically tying has on the intensity of console price competition and the incentives for hardware firms to tie their produced software to their hardware. Tying occurs when a console hardware manufacturer produces software that is incompatible with rival hardware. There are two important trade-offs an integrated firm faces when implementing a technological tie. The first is an effect that increases console market power… CONTINUE READING
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