No abstract

This article studies how the entry of an imitative product influences the demand for the original, in markets with a large number of products where consumers are not aware of most products.We suggest that the release of an imitative product triggers two countervailing forces: a discovery effect that increases awareness and demand for the original, and a substitution effect decreasing that demand. When the

In platform ecosystems, the creation of new products is often based on standardized development tools. Complementors often have a choice between either using these tools or creating the functionality themselves. In this paper, we study how the use of standardized development tools is related to the type of products created. By using data on the use of middleware (e.g., game engines) in the console video game market, we show that the use of development tools is associated with products that are less novel but with higher sales on average. We exploit a policy change that affected the ability of U.S.-based developers to hire foreign workers as an instrument for the use of development tools and find further support for these patterns.

No abstract

No abstract