Working Paper No. 748

Efficiency and the Provision of Open Platforms

Published: April 28, 2008Pages: 16Keywords: Platforms; Two-sided Markets; Open versus ClosedJEL-codes: D40; L10

Efficiency and the Provision of Open Platforms Joacim Tåg


Private firms may not have efficient incentives to allow third-party producers to access their platform or develop extensions for their products. Based on a two-sided market model, I discuss two reasons for why. First, a private firm may not be able to internalize all benefits from cross-group externalities arising with third-party extensions. Second, firms may have strategic incentives to shut out third-parties because it relaxes competition.

Joacim Tåg

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Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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