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Adoptions and Orphans in the Early Microcomputer Market

Author

Listed:
  • 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.

Suggested Citation

  • Neil Gandal & Shane GreenStein & David Salant, 1997. "Adoptions and Orphans in the Early Microcomputer Market," CARE Working Papers 9705, The University of Texas at Austin, Center for Applied Research in Economics.
  • Handle: RePEc:tex:carewp:9705
    Note: none
    as

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    File URL: http://www.eco.utexas.edu/Ecopapers/wp9705.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Chou, Chien-fu & Shy, Oz, 1990. "Network effects without network externalities," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 259-270, June.
    3. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    4. Church, Jeffrey & Gandal, Neil, 1993. "Complementary network externalities and technological adoption," International Journal of Industrial Organization, Elsevier, vol. 11(2), pages 239-260, June.
    5. Katz, Michael L & Shapiro, Carl, 1992. "Product Introduction with Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 55-83, March.
    6. Joseph Farrell & Garth Saloner, 1985. "Installed Base and Compatibility With Implications for Product Preannouncements," Working papers 385, Massachusetts Institute of Technology (MIT), Department of Economics.
    7. 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 822-841, August.
    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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Microcomputer Market;

    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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