Mobile Computing: The Next Platform Rivalry
Type:
SIEPR Discussion Paper 13-030
Author(s):
Published:
03/26/14
Abstract:
All modern information and communications technology (ICT) industries use the platform
organization. A platform in computing is a reconfigurable base of compatible components on
which firms and users build applications. Applications share the general purpose components,
which leads to the exploitation of increasing returns at an industry-wide level (Bresnahan and
Trajtenberg, 1995).
Platforms compete for developers, who create applications which make the platform valuable
for users. Distinct platforms serve different or/or overlapping customers. Platforms also compete
in their governance structures, which determine what obligations a developer assumes, and what
rights the platform leader reserves for itself. Governance serves a useful function, mediating the
terms of transactions and assigning responsibilities to build complements.
We consider governance in mobile computing, specifically. The market involves many highprofile
companies, such as Microsoft, Google, Apple, Nokia, and Research in Motion, who employ
different approaches to platform governance. That variance frames a seemingly simple question:
why doesn’t one form of platform governance emerge as superior, dominating most markets in
which platforms play an essential role?
Our essay will stress the reasons for differentiation, and we propose an argument that is missing
from the platform literature, about changes over time. Platform leaders commit to their approach
to governance, but the governance that can help at one moment can get in the way at a later time.
That opens up opportunities for differentiated platforms.
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