Open innovation in platform competition
We examine the competition between a proprietary platform and an open platform,where each platform holds a two-sided market consisted of app developers and users.The open platform cultivates an innovative environment by inviting public efforts todevelop the platform itself and permitting distributio...
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2010
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sg-smu-ink.sis_research-48552017-11-23T02:09:26Z Open innovation in platform competition LIN, Mei We examine the competition between a proprietary platform and an open platform,where each platform holds a two-sided market consisted of app developers and users.The open platform cultivates an innovative environment by inviting public efforts todevelop the platform itself and permitting distribution of apps outside of its own appmarket; the proprietary platform restricts apps sales solely within its app market. Weuse a game theoretic model to capture this competitive phenomenon and analyze theimpact of growth of the open source community on the platform competition. We foundthat growth of the open community mitigates the platform rivalry, and balances the developernetwork sizes on the two platforms. The platforms’ relative dominance is foundto be a key determining factor in the effect of open community growth in equilibrium.Furthermore, total surplus on the open platform and total welfare of the two platformsboth increase as the open community grows. 2010-05-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/3853 https://ink.library.smu.edu.sg/context/sis_research/article/4855/viewcontent/IIOC2010_563.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Game theory open innovation platform economy network effect Digital Communications and Networking Technology and Innovation Theory and Algorithms |
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Game theory open innovation platform economy network effect Digital Communications and Networking Technology and Innovation Theory and Algorithms LIN, Mei Open innovation in platform competition |
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We examine the competition between a proprietary platform and an open platform,where each platform holds a two-sided market consisted of app developers and users.The open platform cultivates an innovative environment by inviting public efforts todevelop the platform itself and permitting distribution of apps outside of its own appmarket; the proprietary platform restricts apps sales solely within its app market. Weuse a game theoretic model to capture this competitive phenomenon and analyze theimpact of growth of the open source community on the platform competition. We foundthat growth of the open community mitigates the platform rivalry, and balances the developernetwork sizes on the two platforms. The platforms’ relative dominance is foundto be a key determining factor in the effect of open community growth in equilibrium.Furthermore, total surplus on the open platform and total welfare of the two platformsboth increase as the open community grows. |
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LIN, Mei |
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LIN, Mei |
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LIN, Mei |
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Open innovation in platform competition |
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Open innovation in platform competition |
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Open innovation in platform competition |
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Open innovation in platform competition |
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Open innovation in platform competition |
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open innovation in platform competition |
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Institutional Knowledge at Singapore Management University |
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2010 |
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https://ink.library.smu.edu.sg/sis_research/3853 https://ink.library.smu.edu.sg/context/sis_research/article/4855/viewcontent/IIOC2010_563.pdf |
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