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.
|Date of creation:||23 Feb 1995|
|Date of revision:|
|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 (firstname.lastname@example.org)|
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