Technology Adoption in the Presence of Network Externalities Export

@article{citeulike:1761900, abstract = {We analyze technology adoption in industries where network externalities are significant. The pattern of adoption depends on whether technologies are sponsored. A sponsor is an entity that has property rights to the technology and hence is willing to make investments to promote it. Key findings include the following: (1) compatibility tends to be undersupplied by the market, but excessive standardization can occur; (2) in the absence of sponsors, the technology superior today has a strategic advantage and is likely to dominate the market; (3) when one of two rival technologies is sponsored, that technology has a strategic advantage and may be adopted even if it is inferior; (4) when two competing technologies both are sponsored, the technology that will be superior tomorrow has a strategic advantage.}, author = {Katz, Michael L. and Shapiro, Carl}, citeulike-article-id = {1761900}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/1833204}, citeulike-linkout-1 = {http://www.jstor.org/stable/1833204}, doi = {10.2307/1833204}, issn = {00223808}, journal = {The Journal of Political Economy}, keywords = {450-1}, number = {4}, pages = {822--841}, posted-at = {2007-10-12 22:05:28}, priority = {2}, publisher = {The University of Chicago Press}, title = {Technology Adoption in the Presence of Network Externalities}, url = {http://dx.doi.org/10.2307/1833204}, volume = {94}, year = {1986} }

TY - JOUR ID - citeulike:1761900 L3 - citeulike-article-id:1761900 N2 - We analyze technology adoption in industries where network externalities are significant. The pattern of adoption depends on whether technologies are sponsored. A sponsor is an entity that has property rights to the technology and hence is willing to make investments to promote it. Key findings include the following: (1) compatibility tends to be undersupplied by the market, but excessive standardization can occur; (2) in the absence of sponsors, the technology superior today has a strategic advantage and is likely to dominate the market; (3) when one of two rival technologies is sponsored, that technology has a strategic advantage and may be adopted even if it is inferior; (4) when two competing technologies both are sponsored, the technology that will be superior tomorrow has a strategic advantage. IS - 4 JF - The Journal of Political Economy SN - 00223808 EP - 841 TI - Technology Adoption in the Presence of Network Externalities PB - The University of Chicago Press VL - 94 SP - 822 KW - 450-1 AU - Katz, Michael AU - Shapiro, Carl PY - 1986/// UR - http://dx.doi.org/10.2307/1833204 ER -