Software exclusivity and the scope of indirect network effects in the U.S. home video game market
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Research on complementor multihoming has largely been conducted in mature platform contexts where platform dynamics have been reduced to interactions between two dominant platforms, leading to a one-off multihoming decision with only one multihoming option.
“research on complementor multihoming has largely been conducted in mature platform contexts where platform dynamics have been reduced to the interactions between two dominant platforms; consequently, complementors face a one-off multihoming decision with only one multihoming option”
From Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets (2026) · cites this paper as Corts and Lederman 2009
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Experimental — accuracy not yet measuredMultihoming can enable complementors to access additional user bases, quickly drive up their revenues, and shorten the time to profitability.
“First, multihoming can enable complementors to access additional user bases, quickly drive up their revenues, and shorten the time to profitability (Bresnahan et al. 2014;Corts and Lederman 2009;Rietveld and Eggers 2018).”
From Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets (2026) · cites this paper as Corts and Lederman 2009
Section II (Industry Background; page not available) says multi-platform releases let publishers sell to users of another console, earn additional revenue, and make some games profitable that would not be profitable as exclusive releases. Section VI (Conclusion; page not available) says they can spread development costs across platforms. Neither section establishes that revenues rise quickly or that the time to profitability is shortened. (LLM, conf=0.88)
Experimental — accuracy not yet measuredFast multihoming to another platform can help complementors expand their market and spread the fixed costs of production and marketing.
“While achieving scale is often challenging in nascent markets, fast multihoming to another platform can help complementors expand their market (Kretschmer and Claussen 2016) and spread the fixed costs of production and marketing (Corts and Lederman 2009).”
From Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets (2026) · cites this paper as Corts and Lederman 2009
The Conclusion says multi-platform releases let publishers spread fixed game-development costs across users of competing platforms; Industry Background likewise explains how a second platform can help recoup those costs. The cited paper does not establish that publishers spread fixed marketing costs, which the citing sentence also attributes to it. (LLM, conf=0.88)
Experimental — accuracy not yet measuredMost studies in the platform literature have centered around complementors' market entry strategies and have mainly examined single-platform settings.
“Most studies in this field have centered around complementors' market entry strategies (Ceccagnoli et al. 2012;Cennamo et al. 2018;Corts and Lederman 2009;Huang et al. 2013;Kapoor and Agarwal 2017), and they have mainly examined single-platform settings (Ceccagnoli et al. 2012;Kapoor and Agarwal 2017).”
From Smart Timing for Smart Products? Complementor Multihoming in Nascent Platform Markets (2026) · cites this paper as Corts and Lederman 2009
The Industry Background discusses publishers’ choices to release games on one or multiple platforms, which relates to complementors’ platform-entry strategies. But it explicitly says explaining changes in exclusivity is not the research focus; the focus is how exclusivity affects indirect network effects. The single-platform-settings clause cites other works, not Corts and Lederman. (LLM, conf=0.83)
Experimental — accuracy not yet measuredComplementors can decide to approach new market opportunities, particularly when encountering strong competition within a market.
“Beyond those strategic considerations within one platform ecosystem, complementors can also decide to approach new market opportunities, particularly when encountering strong competition within a market (Corts & Lederman, 2009;Nerbel & Kreutzer, 2023).”
From What role do data network effects play for multihoming complements? An empirical analysis of platform complementors’ strategies for consumer value creation (2025) · cites this paper as Corts & Lederman, 2009
Section II (Industry Background; page unavailable) says game publishers may release titles on multiple platforms to reach a larger audience. Section III.B (Software supply; page unavailable) discusses how growth in rival platforms can draw software development away from a focal platform. These passages support pursuing users on other platforms, but do not establish that complementors seek new markets particularly because they face strong competition within a market. (LLM, conf=0.82)
Experimental — accuracy not yet measured
In markets with high platform competition, complementors seek to reach out to the entire end user population by offering their products and services to multiple platforms.
“Particularly in markets with high platform competition, complementors seek to reach out to the entire end user population by offering their products and services to multiple platforms (Corts & Lederman, 2009).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Corts & Lederman, 2009
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- Authors
- Corts, K. S., & Lederman, M.
- Affiliations
- University of Toronto (CA)
- Corresponding author
- Lederman, Mara
- ORCID
- Corts, Kenneth S.
- Venue
- International Journal of Industrial Organization
- Publisher
- Elsevier BV
- Published
- 2009-03
- Volume
- 27
- Issue
- 2
- Pages
- 121-136
- ISSN
- 0167-7187 (ISSN-L)
- OpenAlex
- W3121818261
- Cited by
- 218
- References
- 24
- Citations by year
- 2026: 9 · 2025: 13 · 2024: 10 · 2023: 18 · 2022: 9 · 2021: 17 · 2020: 23 · 2019: 9 · 2018: 15 · 2017: 11 · 2016: 16 · 2015: 11 · 2014: 9 · 2013: 16 · 2012: 4
- FWCI
- 28.40
- Type
- journal article
- Language
- en
- Open access
- green
- hdl.handle.net
- Locations
- International Journal of Industrial Organization (publishedVersion)
- TSpace (University of Toronto) (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Sociology and Political Science › Digital Games and Media
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Keywords
- indirect network effects, installed base, platform competition, video game console market
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