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Forking, Fragmentation, and Splintering

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  • Timothy Simcoe

    (Questrom School of Business, Boston University, Boston, Massachusetts 02215; National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • Jeremy Watson

    (Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455)

Abstract

Although economic theory suggests that markets may “tip” toward a dominant platform or standard, there are many prominent examples of persistent incompatibility, interplatform competition, and standards proliferation. This paper examines the phenomena of forking, fragmentation, and splintering in markets with network effects. We illustrate several causes of miscoordination, as well as the tools that firms and industries use to fight it, through short cases of standardization in railroad gauges, modems, operating systems, instant messaging, and internet browsers. We conclude by discussing managerial implications and directions for future research.

Suggested Citation

  • Timothy Simcoe & Jeremy Watson, 2019. "Forking, Fragmentation, and Splintering," Strategy Science, INFORMS, vol. 4(4), pages 283-297, December.
    • Handle: RePEc:inm:orstsc:v:4:y:2019:i:4:p:283-297
    DOI: 10.1287/stsc.2019.0094
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