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| Author: | Church, J. Gandal, N. |
| Title: | Networks effects, software provision, and standardization |
| Journal: | Journal of Industrial Economics
1992 : MAR, VOL. 40:1, p.85-103 |
| Index terms: | NETWORKS SOFTWARE STANDARDS COMPUTER TECHNOLOGY COMPUTER SERVICES |
| Language: | eng |
| Abstract: | The software provision decisions of software firms are examined. The provision decision by software firms determines the value and hence market share of competing hardware technologies. It is shown how the provision decision by software firms determines whether multiple hardware technologies are supported in equilibrium or whether there is de facto standardization, with only one hardware technology supplied with software in equilibrium. It is also shown that when consumers place a high value on software variety, there is a suboptimal amount of standardization by the market. In addition, when the market outcome involves standardization, there are multiple equilibria and a standards board could be serve for coordination. |
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