NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Arghya Ghosh

University of New South Wales
School of Economics
Sydney NSW 2052
Australia

E-Mail: a.ghosh@unsw.edu.au

NBER Working Papers and Publications

June 2008An Economic Analysis of Platform Sharing
with Hodaka Morita
in Organizational Innovation and Firm Performance, George Baker, Takeo Hoshi, Hideshi Itoh, and Sadao Nagaoka, organizers
April 2007An Economic Analysis of Platform Sharing
with Hodaka Morita: w13058
We explore the managerial implications and economic consequences of platform sharing under models of horizontal and vertical product differentiation. By using a common platform across different products, firms can save on fixed costs for platform development. At the same time, platform sharing imposes restrictions on firms' ability to differentiate their products, and this reduces their profitability. It might appear that platform sharing across firms makes consumers worse off because firms cooperate in their product development processes to maximize their joint profit. We find, however, that platform sharing across firms benefits consumers in our framework because it intensifies competition in our horizontal differentiation model, and because it increases the quality of the lower-end pro...

Published:

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us