Adoptions and Orphans in the Early Microcomputer 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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| Length: | 37 pages |
| Date of creation: | 23 Feb 1995 |
| Date of revision: | |
| Handle: | RePEc:wpa:wuwpio:9502002 |
| Note: | 37 pages LateX file, plus 4 figures in separate postscript file. To request a hard copy, send e-mail to Stella Padeh, Foerder Institute of Economic Research (foerder@ccsg.tau.ac.il) |
| Contact details of provider: | Web page: http://econwpa.repec.org
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References listed on IDEAS
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- Chou, Chien-fu & Shy, Oz, 1990. "Network effects without network externalities," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 259-270, June.
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