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An Analysis of the Process Generating De Facto Standards in the PC Spreadsheet Software Market

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  • Shurmer, M
  • Swann, P

Abstract

This paper develops a model to analyze the emergence of de facto or 'market defined' compatibility standards in the market for PC spreadsheet software over the period 1982-1988. The model is capable of integrating diverse fragments of empirical evidence and a number of important theoretical building blocks, in particular the analysis of gateways between different versions of the same package, product preannouncements, and diverse consumer tastes towards intrinsic quality and network externalities. The model also explores the implications of different functional forms for the relationship between installed base and the value of network externalities. The paper finds that at least some enhancements to the basic model of standards have to be incorporated to offer a reasonable approximation to developments in the PC spreadsheet software market. The simplest model of de facto standards is not able to describe developments in this market.

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Bibliographic Info

Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 5 (1995)
Issue (Month): 2 (June)
Pages: 119-32

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Handle: RePEc:spr:joevec:v:5:y:1995:i:2:p:119-32

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Cited by:
  1. G.M. Peter Swann, 1999. "An Economic Analysis of Taste-A Review of Gary S. Becker: Accounting for Tastes," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(2), pages 281-296.
  2. Schneider, Lorenz, 2014. "Firm value in emerging network industries," Information Economics and Policy, Elsevier, vol. 26(C), pages 75-87.
  3. Windrum,Paul & Swann,G.M. Peter, 1999. "Networks, Noise and Navigation: Sustaining Metcalfe’s Law through Technological Innovation," Research Memorandum 009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  4. Swann, G. M. Peter, 2001. "Sales practice and market evolution: the case of virtual reality," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1119-1139, July.
  5. Jürgen Bitzer, 1997. "The Computer Software Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?," Discussion Papers of DIW Berlin 149, DIW Berlin, German Institute for Economic Research.
  6. Swann, G. M. Peter, 2002. "The functional form of network effects," Information Economics and Policy, Elsevier, vol. 14(3), pages 417-429, September.

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