two sided competition of proprietary vs open source technology platforms and the implications for software industry 1 nicholas economides 2 evangelos katsamakas 3 key words networks network effects externalities complements structure introduction are hubs value chains in industries some examples microsoft windows pc operating systems intel processors hardware palm system handheld devices sony playstation game consoles firm that becomes a platform leader controls such as market can maintain strong position but also faces challenge managing evolution 4 makes strategic decisions on pricing technical compatibility products it sells directly to end users well with respect sold by other firms complementary its we call this example control set price console often charge royalties developers games following strategy another
