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Adoptions and Orphans in the Early Microcomputer Market

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Author Info

  • Neil Gandal

    ()
    (Eco, Tel Aviv and U. of Texas)

  • Shane GreenStein

    ()
    (Eco, U. of Illinois and Northwestern)

  • David Salant

    ()
    (LECG)

Abstract

In this paper we examine the development of the micro-computer market in the early 1980's. CP/M, a widely adopted operating system, was orphaned by the user and development communities. A new operating system, DOS, and a new hardware platform, the IBM PC, became the prediminant industry standards. We examine the statistical relationship between data that reflects sales activity associated with hardware, software, and peripheral equipment for the competing platforms. We conclude that the economic process underlying the development of DOS differed from those underlying CP/M and that many of these differences related to the role of software development.

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Bibliographic Info

Paper provided by The University of Texas at Austin, Center for Applied Research in Economics in its series CARE Working Papers with number 9705.

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Length: 24 pages
Date of creation: Jun 1997
Date of revision:
Handle: RePEc:tex:carewp:9705

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Keywords: Microcomputer Market;

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References

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  1. Joseph Farrell & Garth Saloner, 1986. "Installed Base and Compatibility, With Implications for Product Preannouncements," Working papers 411, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Church, J. & Gandal, N., 1991. "Complementary Network Externalities and Technological Adoption," Papers 5-91, Tel Aviv.
  3. Katz, Michael L & Shapiro, Carl, 1992. "Product Introduction with Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 55-83, March.
  4. Chou, Chien-fu & Shy, Oz, 1990. "Network effects without network externalities," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 259-270, June.
  5. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-31, March.
  6. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-41, August.
  7. Bresnahan, Timothy F & Greenstein, Shane, 1999. "Technological Competition and the Structure of the Computer Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 1-40, March.
  8. Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
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