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Adoptions and Orphans in the Early Microcomputer Market

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  • Neil Gandal
  • Shane Greenstein
  • David Salant

Abstract

In this paper we examine the development of the microcomputer market in the early 1980s. CP/M, a widely‐adopted operating system, was orphaned by the user and the development communities. A new operating system, DOS, and a new hardware platform, the IBM PC, became the predominant industry standard. We examine the statistical relationship between data that reflects hardware and software sales for the competing platforms. We conclude that the economic processes underlying the development of DOS differed from those underlying CP/M and that many of these differences related to the role of software development.

Suggested Citation

  • Neil Gandal & Shane Greenstein & David Salant, 1999. "Adoptions and Orphans in the Early Microcomputer Market," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 87-105, March.
    • Handle: RePEc:bla:jindec:v:47:y:1999:i:1:p:87-105
    DOI: 10.1111/1467-6451.00091
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    References listed on IDEAS

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    1. 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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    More about this item

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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