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KURODA Toshifumi
Department Tokyo Keizai University , Economics Position Associate Professor |
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| Date | 2016/12/05 |
| Presentation Theme | Identifying the Effect of Pre-installed Smartphone apps on the Mobile Service Markets |
| Conference | Competition and Public Policy in Network Industries |
| Promoters | Kwansei Gakuin University |
| Contribution Type | Collaborative |
| Publisher and common publisher | Takanori Ida, Teppei Kouguchi |
| Details | Modern economic theory predicts that tying can serve as a tool for leveraging market power. In line with this economic theory, competition authorities regulate the tying of Microsoft Windows with its Media Player or Internet browser in the EU and Japan. The authorities also take note of the market power of mobile handset operating systems (OSs) over competition in the app and services markets. We identify the extent to which complementarity and consumer preferences affect the correlation between mobile handset OSs and mobile service app markets (mail, search, and map). We find significant positive complementarity between the mail, search, and map services, and mobile handset OSs. However, the elasticities of the mobile handset OS–mobile service are rather small. We conclude that taking action to restrict mobile handset OSs is less effective than acting on mobile services market directly. |