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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

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    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

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    File URL: http://hdl.handle.net/10.1023/A:1019185305465
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    Bibliographic Info

    Article provided by Springer in its journal NETNOMICS.

    Volume (Year): 1 (1999)
    Issue (Month): 2 (October)
    Pages: 107-126

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    Handle: RePEc:kap:netnom:v:1:y:1999:i:2:p:107-126

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    Web page: http://www.springerlink.com/link.asp?id=102537

    Related research

    Keywords: Java; Internet; object standardization; network externalities; software industry;

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