Complementary Platforms

Cayseele, Patrick Van; Reynaerts, Jo

doi:10.2202/1446-9022.1213

Cited by 7 publications

(5 citation statements)

References 18 publications

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“…The two Belgian financial newspapers De Tijd (in Dutch) and L'Echo (in French) represent complementary platforms. In fact, both papers connect Dutch-and French-speaking readers with companies that want to convey information (Van Cayseele and Reynaerts, 2011). So, to reach both Dutch-and French-speaking investors, companies need to buy advertisement space in both newspapers, which represent complementary inputs for the provision of corporate information.…”

Section: An Economic Viewpoint: Artificial Intelligence Platforms And...mentioning

confidence: 99%

Introduction: opportunities and challenges of the digital single market

Carbonara¹,

Tagliaventi²

2023

SMEs in the Digital Era

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A book on small and medium-sized enterprises (SMEs) cannot start without mention of a few significant data: SMEs stand for 99% of European Union companies, and they employ 50-70% of the workforce (Garzoni et al., 2020;Kääriäinen et al., 2020). Based on this, SMEs are major players in the European market, and this fact per se would account for any attention to this type of business. This need is intensified by the reality that SMEs are still struggling to participate in the data-driven economy and are less sensitive to data protection issues, making them more vulnerable in supply chains (OECD, 2017). This book intends to explore how SMEs can handle digital processes and thrive in an environment that-following the 2020 Covid outbreak-is becoming more and more digital. This book's title refers to the core of digital processes for SMEs, i.e., both the unparalleled opportunities and the heightened challenges related to the digital single market. The European Commission has defined the digital single market as "one in which the free movement of goods, persons, services, and capital is ensured and where individuals and businesses can seamlessly access and exercise online activities under conditions of fair competition and a high level of consumer and personal data protection, irrespective of their nationality or place of residence" (COM(2015(COM( ) 192, 6.5.2015. THE EVOLUTION OF ORGANIZATIONS IN THE DIGITAL ERABecoming digital is rooted in the continuous exploration and adoption of new digital infrastructures, which can be intended as "digital technology tools and systems (e.g., cloud computing, data analytics, online communities, social media, 3D printing, digital makerspaces, etc.) that offer communication, collaboration, and computing capabilities to support innovation and entrepreneurship" (Nambisan, 2017(Nambisan, , 1032. SMEs can resort to digital infrastructures with different intensity, pervasiveness, and objectives. A renowned model maintains that SMEs embark on the digitalization journey through subsequent

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Section: An Economic Viewpoint: Artificial Intelligence Platforms And...mentioning

confidence: 99%

Introduction: opportunities and challenges of the digital single market

Carbonara¹,

Tagliaventi²

2023

SMEs in the Digital Era

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“…Interestingly, Van Cayseele and Reynaerts (2011) were also able to test whether the results obtained by Dari-Mattiacci and Parisi (2006) indirectly apply to complementary platforms. They found that the bundle price (that is, the sum of the prices of all patents) set by independent complementary platforms does not approach the monopoly price as the number of platforms tends to infinity.…”

Section: Multi-sided Markets and Complementary Platformsmentioning

confidence: 99%

Digital platforms, multi-sided markets, and the anticommon problem

Alvisi¹

2023

SMEs in the Digital Era

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In this article we analyzed some of the most relevant contributions of the economic literature on competition among platforms and among firms selling their products within or across platforms. We focused on the impact that such new business models produce on prices, firm profits, and welfare, with particular attention paid to small and medium enterprises (SMEs). In the new Internet of Things, platforms compose "multi-sided ecosystems" where they can either be substitutescompeting to attract the most successful independent complementors-or complementary to one another "by necessity" because of technical or legal reasons. We studied both cases "transversally" and focused on the role of complementarity in shaping price and quantity competition in imperfectly competitive markets. Thus, we will be able to verify whether the standard results on the so-called "tragedy of the anticommons," which dates to Cournot (1838), can be extended to multisided markets.

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“…Changes in the level of inter-network compatibility positively affect the weak platform's marginal incentives to invest and negatively affect those of the dominant one. 28 In sum, two salient aspects of the compatibility-welfare puzzle follow. First, substitutes goods are "bad" for compatibility.…”

Section: Final Remarksmentioning

confidence: 99%

Compatibility with Firm Dominance

Viecens¹

2011

Review of Network Economics

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This paper analyzes the effect of firm dominance on the incentives to become compatible and how compatibility decisions affect investment incentives. We will consider compatibility in two dimensions: compatibility of the complementary good and inter-network compatibility. We show that if products are substitutes, compatibility tends to be welfare decreasing with the potential negative consequences of increasing compatibility being more likely when asymmetries are strong. We also find that in many instances the dominant firm's interests regarding compatibility are in line with those of users, and are opposite to those of the weak firm, which will always demand more compatibility to be enforced. Finally we show that compatibility may harm innovation, particularly for the dominant firm.

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Complementary Platforms

Cited by 7 publications

References 18 publications

Introduction: opportunities and challenges of the digital single market

Introduction: opportunities and challenges of the digital single market

Digital platforms, multi-sided markets, and the anticommon problem

Compatibility with Firm Dominance

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