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# Some Economics of User Interfaces

## Author

Listed:
• Hal R. Varian

(University of Michigan)

## Abstract

I examine the incentives for software providers to design appropriate user interfaces. There are two sorts of costs involved when one uses software: the fixed cost of learning to use a piece of software and the the variable cost of operating the software. For example menu driven software is easy to learn, but tedious to operate. I show that a monopoly provider of software generally invests the right'' amount of resources in making the software easy to learn, but too little in making it easy to operate. In some extreme cases a monopolist may even make the software {\it too\/} easy to learn.

## Suggested Citation

• Hal R. Varian, 1994. "Some Economics of User Interfaces," Computational Economics 9401003, University Library of Munich, Germany.
• Handle: RePEc:wpa:wuwpco:9401003
Note: Postscript file submitted via ftp in compressed format.
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File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/comp/papers/9401/9401003.pdf

File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/comp/papers/9401/9401003.ps.gz

## References listed on IDEAS

as
1. Sheshinski, Eytan, 1976. "Price, Quality and Quantity Regulation in Monopoly Situations," Economica, London School of Economics and Political Science, vol. 43(17), pages 127-137, May.
Full references (including those not matched with items on IDEAS)

### JEL classification:

• C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs

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