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Java and object standardization in the Internet – A way to more competition in the software industry?

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  • Ralf Menkhoff

Abstract

The computer software market is a textbook example of network externalities: if a user decides to work with a specific program, the utility of all other users of the same product increases. This increase in utility is not compensated for by the market; thus one speaks of network externalities. Such network externalities lead to a natural tendency towards quasi standardization, favoring a high market concentration on the supply side. This article demonstrates that Java programs combined with an appropriate object standardization may reduce the influence of the network externalities, giving smaller companies a better chance to compete successfully. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Ralf Menkhoff, 1999. "Java and object standardization in the Internet – A way to more competition in the software industry?," Netnomics, Springer, vol. 1(2), pages 107-126, October.
    • Handle: RePEc:kap:netnom:v:1:y:1999:i:2:p:107-126
    DOI: 10.1023/A:1019185305465
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