Differentiation Across Standards and Adoption Failure in 56K Modems
Abstract56K modems were introduced under two competing incompatible standards. We show the importance of competition between Internet Service Providers in the adoption process. We show that ISP’s were less likely to adopt the technology that more competitors adopted. This result is particularly striking given that industry participants expected coordination on one standard or the other. We speculate about the role of ISP differentiation in preventing the market from achieving standardization until a government organization intervened.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 03-12.
Length: 42 pages
Date of creation: Dec 2003
Date of revision: Dec 2003
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Web page: http://www.NETinst.org/
Find related papers by JEL classification:
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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