IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v8y1998i3p285-296.html
   My bibliography  Save this article

Technological standards with local externalities and decentralized behaviour

Author

Listed:
  • John H. Miller

    (Department of Social and Decision Sciences, Carnegie Mellon University, Porter Hall 208, Pittsburgh, PA 15213, USA)

  • Robin Cowan

    (Economics Department, University of Western Ontario, London, Ontario N6A 5C2, Canada)

Abstract

We model a situation in which agents must choose between two technologies that operate under local, positive network externalities. We find that decentralized behaviour can lead to the emergence of a technical standard, but can also result in a variety of other equilibria. Policy to eliminate non-standardized equilibria can be effected, but in some cases it may be very costly.

Suggested Citation

  • John H. Miller & Robin Cowan, 1998. "Technological standards with local externalities and decentralized behaviour," Journal of Evolutionary Economics, Springer, vol. 8(3), pages 285-296.
    • Handle: RePEc:spr:joevec:v:8:y:1998:i:3:p:285-296
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00191/papers/8008003/80080285.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    File URL: http://link.springer.de/link/service/journals/00191/papers/8008003/80080285.ps.gz
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kretschmer, Tobias, 2004. "Upgrading and niche usage of PC operating systems," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1155-1182, November.
    2. Schade, Sven & Buxmann, Peter, 2005. "A Prototype to Analyse and Support Standardization Decisions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35795, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Giovanni Pegoretti & Francesco Rentocchini & Giuseppe Vittucci Marzetti, 2012. "An agent-based model of innovation diffusion: network structure and coexistence under different information regimes," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 7(2), pages 145-165, October.
    4. Babutsidze, Zakaria & Cowan, Robin, 2009. "Inertia, Interaction and Clustering in Demand," MERIT Working Papers 2009-045, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Joachim Henkel & Jörn Block, 2013. "Peer influence in network markets: a theoretical and empirical analysis," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 925-953, November.
    6. van Wegberg, M.J., 2003. "The grand coalition versus competing coalitions: trade-offs in how to standardize," Research Memorandum 021, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    7. Eocman Lee & Jeho Lee & Jongseok Lee, 2006. "Reconsideration of the Winner-Take-All Hypothesis: Complex Networks and Local Bias," Management Science, INFORMS, vol. 52(12), pages 1838-1848, December.
    8. Liangjie Zhao & Wenqi Duan, 2014. "Simulating the Evolution of Market Shares: The Effects of Customer Learning and Local Network Externalities," Computational Economics, Springer;Society for Computational Economics, vol. 43(1), pages 53-70, January.
    9. Corrocher, Nicoletta & Zirulia, Lorenzo, 0. "Me and you and everyone we know: An empirical analysis of local network effects in mobile communications," Telecommunications Policy, Elsevier, vol. 33(1-2), pages 68-79, February.
    10. Heli Koski & Tobias Kretschmer, 2004. "Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications," Journal of Industry, Competition and Trade, Springer, vol. 4(1), pages 5-31, March.
    11. van Wegberg, M.J., 2003. "A note on network structure: functional relationships between network indicators," Research Memorandum 032, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

    More about this item

    Keywords

    Local complementarities ; Technology choice ; Standardization;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D2 - Microeconomics - - Production and Organizations
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:8:y:1998:i:3:p:285-296. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.