Adoptions and Orphans in the Early Microcumputer Market
In this paper we develop a model with (1) differentiated consumers, (2) endogenous adoption times, (3) technical uncertainty, and (4) alternative technologies sponsored by competing vendors. We identify conditions under which orphaning arises endogenously in a framework of dynamic competition. We then use the model to examine the development of the micro-computer market in the early 1980s, when the orphaning of a widely-adopted operating system occurred. We find that the data characterizing this event are consistent with our theoretical framework.
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"Complementary network externalities and technological adoption,"
International Journal of Industrial Organization,
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97028, Stanford University, Department of Economics.
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"Installed Base and Compatibility With Implications for Product Preannouncements,"
385, Massachusetts Institute of Technology (MIT), Department of Economics.
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- 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.
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