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Technological Standardization with and without Borders in an Interacting Agents Model

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  • Cowan, Robin
  • Cowan, William

    (MERIT)

Abstract

This paper models an economy in which a large number of agents are choosing among several technologies. There is a single, global, market for the technologies but they are subject to localized network externalities in use. We examine the issue of technological standardization, and the coordination of choices among the agents. We generate equilibirum conditions under two spatial conditions - agents located in a featureless plain, and agents located in pre-existing regions with strong borders. We find the conditions under which standardization exists - globally, only locally, or not at all - and derive the effects of different parameters. The presence of a phase change is demonstrated. An appendix provides a derivation o f the equilibrium condition used in many interacting agents models.

Suggested Citation

  • Cowan, Robin & Cowan, William, 1998. "Technological Standardization with and without Borders in an Interacting Agents Model," Research Memorandum 015, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1998015
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    References listed on IDEAS

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    10. Robin Cowan & William Cowan, 1998. "On Clustering in the Location of R&D: Statics and Dynamics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(2-3), pages 201-230.
    11. William A. Brock, 1993. "Pathways to randomness in the economy: Emergent nonlinearity and chaos in economics and finance," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(1), pages 3-55.
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    Cited by:

    1. Marian Beise, 2003. "Lead Markets: Drivers of the Global Diffusion of Innovations," Discussion Paper Series 141, Research Institute for Economics & Business Administration, Kobe University.
    2. Leibbrandt, Gottfried, 2004. "Harmonizing Europe’s payment systems: an uphill battle?," Research Memorandum 020, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    3. Agnès Arabeyre-Petiot, 1999. "High speed road network and spatial lock in: towards a technology standards approach. The case of the French aircraft industry [Le rôle des liaisons interurbaines dans l’arbitrage métropole-système," Post-Print halshs-01357425, HAL.
    4. Opolot, Daniel, 2012. "Social interactions and complex networks," MERIT Working Papers 2012-014, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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