How the Hold Up Problem Explains the Flash Wars (GigaOM)
Posted Aug 9, 2010 5:39 UTC (Mon) by gmaxwell
In reply to: How the Hold Up Problem Explains the Flash Wars (GigaOM)
Parent article: How the Hold Up Problem Explains the Flash Wars (GigaOM)
It does only when you take it out of the context that provided the justification.
[...]the party with ownership of a key resource may gain the ability to hold up its partner, demanding an unreasonably high price.
Flash is a proprietary software development platform and products built on Flash are at risk of hold ups.
Permitting flash would provide Adobe valuable leverage against Apple. "We won't give you this feature unless you do X", "We won't release a new version for your platform unless you pay Y", "Highest performance to the phone maker with the highest bid!", etc.
Open but still non-apple tools don't present the same problems. Instead we could argue that allowing them would disrupt Apple's ability to "hold-up" their own customers and partners with obvious potentially negative effects on Apple's future income. The article doesn't go into that point since the focus is on on Flash but it can be understood within the same framework.
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