10.17889/E109777
Lee, Robin S.
Replication data for: Vertical Integration and Exclusivity in Platform and Two-Sided Markets
ICPSR Inter-university Consortium for Political and Social Research
2012
10.1257/aer.103.7.2960
10.1257/aer.103.7.2960
V0
This paper measures the impact of vertically integrated and exclusive
software on industry structure and welfare in the sixth-generation of
the US video game industry (2000-2005). I specify and estimate a
dynamic model of both consumer demand for hardware and software
products, and software demand for hardware platforms. I use estimates
to simulate market outcomes had platforms been unable to own
or contract exclusively with software. Driven by increased software
compatibility, hardware and software sales would have increased
by 7 percent and 58 percent and consumer welfare by $1.5 billion.
Gains would be realized only by the incumbent, suggesting exclusivity
favored the entrant platforms.