Agency or resale: Effects of a platform-performance investment for frenemy platforms

• Published in: Decision Support Systems Vol. 124; p. 113098
• Main Authors: Li, Zhiyong, Ho, Yi-Chun, Nan, Guofang, Li, Minqiang
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.09.2019; Elsevier Sequoia S.A
• Subjects: Agency model; Business models; Content service; Decision support systems; Hardware; Hardware service; Investment; Performance enhancement; Platform competition; Platform-performance investment; Platforms; Resale model; Hardware service; Content service; Resale model; Agency model; Platform competition; Platform-performance investment

Competing platforms with hardware and content differentiation may adopt a one-way compatibility strategy, in which one platform owner allows its hardware users to purchase the competitor's content service, whereas the competitor does not. Moreover, the platform owners can choose a resale model...