Optimal exclusivity strategy for digital service on competing platforms with different installed bases

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Veröffentlicht in:Journal of Retailing vol. 101, no. 1 (Apr 2025), p. 120-138
1. Verfasser: Chai, Zheng
Weitere Verfasser: Feng, Nan, Wang, Harry Jiannan, Feng, Haiyang
Veröffentlicht:
Elsevier Limited
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022 |a 0022-4359 
022 |a 1873-3271 
024 7 |a 10.1016/j.jretai.2025.01.004  |2 doi 
035 |a 3199190277 
045 2 |b d20250401  |b d20250430 
084 |a 28003  |2 nlm 
100 1 |a Chai, Zheng  |u College of Management and Economics, Laboratory of Computation and Analytics of Complex Management Systems (CACMS), Tianjin University, Tianjin 300072, PR China 
245 1 |a Optimal exclusivity strategy for digital service on competing platforms with different installed bases 
260 |b Elsevier Limited  |c Apr 2025 
513 |a Journal Article 
520 3 |a Exclusive digital services are increasingly prevalent on growing digital service platforms. This study explores the optimal exclusivity strategy for digital service developers and examines the negotiation of licensing fees in exclusive agreements between developers and platforms. We develop a game-theoretic model in which a developer offers a digital service to consumers through competing platforms, one of which is superior in terms of installed base and bargaining power in negotiations with the developer. One interesting finding is that the inferior platform may pay a lower licensing fee to the developer than the superior platform when the difference in their installed bases is small. As the superior platform's installed base grows, its equilibrium licensing fee increases if its bargaining power is low but decreases if it is high. Furthermore, our analysis reveals that exclusivity on the superior platform is more profitable for the developer when the inferior platform's installed base is sufficiently small. Conversely, when the inferior platform's installed base is large, the developer prefers exclusivity on the inferior platform if the number of new consumers is sufficiently large, and non-exclusivity otherwise. Finally, we find that consumer surplus is always highest under the non-exclusivity strategy, while social welfare reaches its maximum under the non-exclusivity strategy only when the platform with lower intrinsic value has a sufficiently large installed base. 
610 4 |a Sony Computer Entertainment America Inc 
653 |a Agreements 
653 |a Consumer behavior 
653 |a Licenses 
653 |a Computer & video games 
653 |a Retailing 
653 |a Strategic planning 
653 |a Fees & charges 
653 |a Bargaining 
653 |a Computer platforms 
653 |a Equilibrium 
653 |a Competition 
700 1 |a Feng, Nan  |u College of Management and Economics, Laboratory of Computation and Analytics of Complex Management Systems (CACMS), Tianjin University, Tianjin 300072, PR China 
700 1 |a Wang, Harry Jiannan  |u Department of Accounting and MIS, University of Delaware, Newark, DE, United States 
700 1 |a Feng, Haiyang  |u College of Management and Economics, Laboratory of Computation and Analytics of Complex Management Systems (CACMS), Tianjin University, Tianjin 300072, PR China 
773 0 |t Journal of Retailing  |g vol. 101, no. 1 (Apr 2025), p. 120-138 
786 0 |d ProQuest  |t ABI/INFORM Global 
856 4 1 |3 Citation/Abstract  |u https://www.proquest.com/docview/3199190277/abstract/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch 
856 4 0 |3 Full Text - PDF  |u https://www.proquest.com/docview/3199190277/fulltextPDF/embedded/7BTGNMKEMPT1V9Z2?source=fedsrch