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Competition among Firms in Digital Convergence era
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  • Competition among Firms in Digital Convergence era
  • Competition among Firms in Digital Convergence era
저자명
Yoo. Byung-Joon,Lim. Hyun-Young
간행물명
International journal of management science
권/호정보
2010년|16권 2호|pp.1-15 (15 pages)
발행정보
한국경영과학회
파일정보
정기간행물|ENG|
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이 논문은 한국과학기술정보연구원과 논문 연계를 통해 무료로 제공되는 원문입니다.
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기타언어초록

Digital convergence which means the convergence of industry areas related to digital technologies is an important phenomenon in business, which will decide the fates of firms in the near future. The only firms which can create synergy effects from digital convergence are expected to be the winners in the fierce competition of digital convergence era. In our analysis, we examine the strategy of an integrated firm which has businesses in two different industry areas which are related to each other. By using a game theoretical model, we show how the integrated firm can win over two single separated firms which have business in only one industry area each by leveraging the two businesses the integrated firm has. In our welfare analysis, we also show that this convergence may be even beneficial to consumers, which seems counter-intuitive to social concerns about anti-competitive behaviors by integrated firms. Additionally, we study comparison between industry convergence and product convergence.