Path dependence and the Korean keyboard
This paper recounts the evolution of the Korean keyboard as a case in which the disadvantages of the inherited standard turn into a nonissue with the advancement of auxiliary technologies. The persistence of an inherited standard, when a superior alternative is available, is usually regarded as market failure. However, if the transition costs to the new standard are such that the net gains from the transition are insufficient, the situation is unfortunate, but not market failure. The situation may change over time. If the net gain from the alternative standard increases, or transition costs to new alternative decrease, or both, the situation turns into one in which entrepreneurs can profit by making the transition. Where appropriate, an institutional reform may lower transition costs substantially. This paper suggests an additional possibility of technological changes that make the transition unnecessary. In the case of the Korean keyboard, changes in auxiliary technologies have rendered the disadvantages of the inherited standard innocuous. The case provides a cautionary tale against the temptation to drastically alter a seemingly hopelessly inferior inherited standard. The lesson of the Korean keyboard applies to Japanese and Chinese keyboards with even greater force.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Liebowitz, S J & Margolis, Stephen E, 1990. "The Fable of the Keys," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 1-25, April.
- S. J. Liebowitz & Stephen E. Margolis, 1994. "Network Externality: An Uncommon Tragedy," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 133-150, Spring.
- Cowan, Robin, 1988.
"Nuclear Power Reactors: A Study In Technological Lock-In,"
88-33, C.V. Starr Center for Applied Economics, New York University.
- Cowan, Robin, 1990. "Nuclear Power Reactors: A Study in Technological Lock-in," The Journal of Economic History, Cambridge University Press, vol. 50(03), pages 541-567, September.
- David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-61, May.
- Liebowitz, S J & Margolis, Stephen E, 1995.
"Path Dependence, Lock-in, and History,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 11(1), pages 205-26, April.
- Cowan, Robin, 1991. "Tortoises and Hares: Choice among Technologies of Unknown Merit," Economic Journal, Royal Economic Society, vol. 101(407), pages 801-14, July.
- David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
- Choi, Young Back, 2008. "Path dependence and the Korean alphabet," Journal of Economic Behavior & Organization, Elsevier, vol. 65(2), pages 185-201, February.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:88:y:2013:i:c:p:37-46. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.