Exclusivity and Control
نویسندگان
چکیده
We model competition between content distributors (platforms) for content providers, and show that whether or not content is exclusive or “multihomes” depends crucially on whether or not content providers maintain control over their own pricing to consumers: if content providers sell their content outright and relinquish control, they will tend to be exclusive; on the other hand, if content providers maintain control and only “affiliate” with platforms, then multihoming is sustainable in equilibrium. We show that the outcome under affiliation depends on the tradeoff between platform rent extraction (which increases in exclusivity) and content rent extraction (which increases in multihoming), and demonstrate that the propensity for exclusivity can be increasing, decreasing, or even non-monotonic in content quality. Finally, if a content provider internalizes the effect of its own price on platform demand, we prove that a platform that already has exclusive access to content may prefer to relinquish control over content pricing to the content provider in order to reduce price competition at the platform level. ∗We thank the editor, two anonymous referees, Patrick Rey, Yossi Spiegel, and seminar participants at the Fourth Bi-annual Conference on the Economics of the Software and Internet Industries in Toulouse for helpful comments and suggestions. †Harvard Business School, contact: [email protected]. ‡Stern School of Business, New York University, contact: [email protected].
منابع مشابه
Exclusivity, Contingent Control Rights, and the Design of Internet Portal Alliances July 2009
We explore the relationship between exclusivity and the use of verifiable performance measures to allocate state-contingent control rights using a sample of over 100 Internet portal alliance contracts. We find that the stronger the exclusivity arrangement between the parties, the more likely are contingent control rights to be incorporated into alliance contracts. In particular we find evidence...
متن کاملMutual exclusivity analysis identifies oncogenic network modules.
Although individual tumors of the same clinical type have surprisingly diverse genomic alterations, these events tend to occur in a limited number of pathways, and alterations that affect the same pathway tend to not co-occur in the same patient. While pathway analysis has been a powerful tool in cancer genomics, our knowledge of oncogenic pathway modules is incomplete. To systematically identi...
متن کاملRelationship Between Breast Feeding Duration Childhood and Blood Pressure in Early Adulthood
Introduction: Breastfeeding produces an important effect on the physiology of the body, metabolism and human clinical status. Available evidence suggested that breastfeeding has a prophylactic effect on adiposity, blood pressure and other chronic diseases. Thus, this study was conducted to determine the association between infant breastfeeding and blood pressure status in early adulthood. Ma...
متن کاملRaising the Barriers to Access to Medicines in the Developing World – The Relentless Push for Data Exclusivity
Since the adoption of the WTO-TRIPS Agreement in 1994, there has been significant controversy over the impact of pharmaceutical patent protection on the access to medicines in the developing world. In addition to the market exclusivity provided by patents, the pharmaceutical industry has also sought to further extend their monopolies by advocating the need for additional 'regulatory' protection...
متن کامل