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Full-Text Articles in Social and Behavioral Sciences
Applications Barriers To Entry And Exclusive Vertical Contracts In Platform Markets, James Prieger, Wei-Min Hu
Applications Barriers To Entry And Exclusive Vertical Contracts In Platform Markets, James Prieger, Wei-Min Hu
School of Public Policy Working Papers
Our study extends the empirical literature on whether vertical restraints are anticompetitive. We focus on exclusive contracting in platform markets, which feature indirect network effects and thus are susceptible to applications barriers to entry. Exclusive contracts in vertical relationships between the platform provider and software supplier can heighten entry barriers. We test these theories in the home video game market. We find that indirect network effects from software on hardware demand are present, and that exclusivity takes market share from rivals, but only when most games are non-exclusive. The marginal exclusive game contributes virtually nothing to console demand. Thus, allowing …
The Broadband Digital Divide And The Nexus Of Race, Competition, And Quality, James Prieger, Wei-Min Hu
The Broadband Digital Divide And The Nexus Of Race, Competition, And Quality, James Prieger, Wei-Min Hu
School of Public Policy Working Papers
We examine the gap in broadband access to the Internet between minority groups and white households with geographically fine data on DSL subscription. In addition to income and demographics, we also examine quality of service and competition as components of the Digital Divide. The gaps in DSL demand for blacks and Hispanics do not disappear when income, education, and other demographic variables are accounted for. However, lack of competition is an important driver of the Digital Divide for blacks. Service quality is an important determinant of demand, and ignoring it masks the true size of the DSL gap for Hispanics.