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Upgrading and niche usage of PC operating systems

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  • Kretschmer, Tobias

Abstract

Microsoft has been dominating the market for PC operating systems (OS) for the last two decades. This paper analyzes the decision of firms to standardize on the mainstream OS family and assesses whether upgrading to the latest version within the MS family is a substitute for using niche OS. We address the following questions: 1) How likely is a firm to standardize on the Microsoft family? 2) How quickly will a firm upgrade to a new version of the mainstream system? 3) Which niche operating system is a firm likely to use, if any? We find that upgrading and niche usage seem to be substitutes to some extent, but that larger and more IT-intensive firms will rather use niche systems than upgrade to the latest Windows version.

Suggested Citation

  • Kretschmer, Tobias, 2004. "Upgrading and niche usage of PC operating systems," LSE Research Online Documents on Economics 802, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:802
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    Cited by:

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    2. P. Dogan, "undated". "Vertical Networks, Integration, and Connectivity," Working Paper 33644, Harvard University OpenScholar.
    3. Michelsen, Carl Christian & Madlener, Reinhard, 2016. "Switching from fossil fuel to renewables in residential heating systems: An empirical study of homeowners' decisions in Germany," Energy Policy, Elsevier, vol. 89(C), pages 95-105.
    4. Heinrich, Torsten, 2014. "Standard wars, tied standards, and network externality induced path dependence in the ICT sector," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 309-320.
    5. Leonhard Dobusch & Elke Schüßler, 2013. "Theorizing path dependence: a review of positive feedback mechanisms in technology markets, regional clusters, and organizations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(3), pages 617-647, June.
    6. 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.
    7. Tobias Kretschmer, 2005. "Competing technologies in the database management systems market," Working Papers 05-17, NET Institute, revised Oct 2005.
    8. Pinar Doğan, 2009. "Vertical Networks, Integration, and Connectivity," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(2), pages 347-392, June.

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    More about this item

    Keywords

    Operating systems; standardization; upgrading; niche products. JEL classification codes: L15; L86.;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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