Competition and Technology Innovation in PC Operating System Market: Two-sided Market Perspective (ID: 2-087)

摘要

Based on two-sided market theory, using Hotelling linear city model this paper studies the competition and evolvement of the market of PC operating system. It is shown that consumer installation base, technology innovation and support of application have has played a very important role in the market. In the competition between the same business models, it is preferable for operating system platform to subsidy application developer and gain revenue from consumers. After achieving dominance of market through technological advantage due to technology innovation and support of application developer, because of great consumer installation base, Windows is provided with an incomparable position to other operating systems adopting the same business model with Windows.