• DOI:10.1007/S11129-014-9143-9
Corpus ID: 13439320

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}
}

Timothy P. Derdenger

Published 2014

Economics

Quantitative Marketing and Economics

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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