Rapid Technical Change and the Speed of Lock-in: Standard Battles in the Local Area Network Industry in the 1990s
AbstractThe rise of Fast Ethernet as the dominant standard for high speed connection in the Local Area Network industry is chosen to analyse the relevance of increasing returns and network externalities in determining the speed of standard diffusion. Although it was not the first standard to emerge, Fast Ethernet was able to catch up an out-compete existing alternatives due its ability to target different user needs and penetrate new market niches. In the presence of rapid technological change, even though a technology enjoys a head start over competing alternatives, achieving lock-in may be more difficult than the theory on increasing returns and network externalities generally predicts.
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Bibliographic InfoPaper provided by KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy in its series KITeS Working Papers with number 146.
Length: 41 pages
Date of creation: Jul 2003
Date of revision: Jul 2003
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Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-10-20 (All new papers)
- NEP-COM-2003-10-20 (Industrial Competition)
- NEP-HIS-2003-10-20 (Business, Economic & Financial History)
- NEP-INO-2003-10-20 (Innovation)
- NEP-TID-2003-10-20 (Technology & Industrial Dynamics)
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