Stitched College Willis Hurricanes Mcgahee Green Jerseys 2Volume 20, Issue 3
Exclusivity and Control
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.
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 nonmonotonic 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.
Exclusivity and Control: Online Appendix
|Filename||Stitched College Willis Hurricanes Mcgahee Green Jerseys Description|
|Stitched 2018 Program Flexbase Cool Lance Baseball Authentic Jersey Gold White Mccullers Astros 43 Base231.4 KB||Supporting info item|
Please note: The publisher is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing content) should be directed to the corresponding author for the article.