ESTIMATING THE EFFECTOF EXCLUSIVITY ON MULTI-SIDED MARKETS: AN EMPIRICAL STUDY OF VIDEO GAME MARKET

At present many markets may be viewed as multisided with platforms where different groups of agents interact. However, aspects these are still not thoroughly studied, including the competition between goal to increase user base. As noted in theoretical works, due phenomenon zero prices, non-price factors play a leading role on such markets. Among others importance exclusive contracts is highlighted scientific literature, but empirically their effect base has been fully estimated. In this study we examine video game market since its global economy increased recent decades. The exclusivity total platforms’ sales and volumes individual games an additional control variable, age rating included, which was considered prior works. Drawing results estimating econometric model, author concludes that for it advantageous share contracts, relationship characterized by diminishing returns scale. On other hand, developers distribution particular platform lower overall sales. Based can concluded compete process negotiating compensation from should provided