Two-Sided Competition of Proprietary vs. Open Source Technology Platforms and the Implications for the Software Industry

@article{Economides2006TwoSidedCO,
  title={Two-Sided Competition of Proprietary vs. Open Source Technology Platforms and the Implications for the Software Industry},
  author={Nicholas Economides and Evangelos Katsamakas},
  journal={Management Science},
  year={2006},
  volume={52},
  pages={1057-1071}
}
T platforms, such as Microsoft Windows, are the hubs of technology industries. We develop a framework to characterize the optimal two-sided pricing strategy of a platform firm; that is, the pricing strategy toward the direct users of the platform as well as toward firms offering applications that are complementary to the platform. We compare industry structures based on a proprietary platform (such as Windows) with those based on an open source platform (such as Linux), and analyze the… CONTINUE READING
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