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Competing Compatibility Standards and Network Externalities in the PC Software Market

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Author Info
Gandal, Neil
Abstract

This paper is an empirical study of the value of four file compatibility standards for transferring data in the personal computer software market. The results are that only the LOTUS file compatibility standard is significant in explaining price variations and it is significant in both the spreadsheet and database management system markets. This supports the hypothesis that the personal computer software market exhibits complementary network externalities. Copyright 1995 by MIT Press.

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File URL: http://links.jstor.org/sici?sici=0034-6535%28199511%2977%3A4%3C599%3ACCSANE%3E2.0.CO%3B2-A&origin=bc
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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 77 (1995)
Issue (Month): 4 (November)
Pages: 599-608
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Handle: RePEc:tpr:restat:v:77:y:1995:i:4:p:599-608

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  2. Bronwyn Hall & Beethika Khan, 2003. "Adoption of New Technology," Department of Economics, Working Paper Series 1055, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
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  3. Mitsuru Sunada, 2008. "Network effects with quality change: an empirical analysis of the Japanese mobile telecommunications market, 1995-2001," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 657-674. [Downloadable!]
  4. Markus Pasche & Sebastian von Engelhardt, 2004. "Volkswirtschaftliche Aspekte der Open-Source-Softwareentwicklung," Jenaer Schriften zur Wirtschaftswissenschaft 18/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  5. Fabio Maria Manenti & Ernesto Somma, 2008. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," "Marco Fanno" Working Papers 0068, Dipartimento di Scienze Economiche "Marco Fanno". [Downloadable!]
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  6. Barrett, Christopher B. & Yang, Yi Nung, 1998. "Rational Incompatibility With International Product Standards," Economics Research Institute, ERI Study Papers 28342, Utah State University, Economics Department. [Downloadable!]
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  7. Christopher R. Knittel & Victor Stango, 2006. "Strategic Incompatibility in ATM Markets," NBER Working Papers 12604, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Markus Pasche, 2005. "(Self-)Regulation of a Natural Monopoly via Complementary Goods - the Case of F/OSS Business Models," Jenaer Schriften zur Wirtschaftswissenschaft 18/2005, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  9. Cooper, Russel & Madden, Gary G, 2008. "Internet network externalities," MPRA Paper 13004, University Library of Munich, Germany. [Downloadable!]
  10. Christopher R. Knittel & Victor Stango, 2004. "Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs," NBER Working Papers 10962, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Hartigh, E. den & Langerak, F. & Commandeur, H.R., 2002. "The Effects of Self-Reinforcing Mechanisms on Firm Performance," Research Paper ERS-2002-46-MKT Revision_, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  12. Christopher R. Knittel & Victor Stango, 2003. "Compatibility and pricing with indirect network effects: evidence from ATMs," Working Paper Series WP-03-33, Federal Reserve Bank of Chicago. [Downloadable!]
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  13. Michal Grajek, 2002. "Identification of Network Externalities in Markets for Non-Durables," CIG Working Papers FS IV 02-32, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  14. Stefan Mai, 2002. "International co-ordination of e-commerce," IWP Discussion Paper Series 03/2002, Institute for Economic Policy, Cologne, Germany. [Downloadable!]
  15. Baraldi, A. Laura, 2008. "Network Externalities and Critical Mass in the Mobile Telephone Network: a Panel Data Estimation," MPRA Paper 13373, University Library of Munich, Germany. [Downloadable!]
  16. Arun Sundararajan, 2003. "Network Effects, Nonlinear Pricing and Entry Deterrence," Industrial Organization 0307002, EconWPA. [Downloadable!]
  17. Christos Ioannidis & Mick Silver, 2003. "Chained, exact and superlative hedonic price changes: estimates from microdata," Applied Economics, Taylor and Francis Journals, vol. 35(9), pages 1005-1014, January. [Downloadable!] (restricted)
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