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Journal Article

Competing Compatibility Standards and Network Externalities in the PC Software Market

Neil Gandal
The Review of Economics and Statistics
Vol. 77, No. 4 (Nov., 1995), pp. 599-608
Published by: The MIT Press
DOI: 10.2307/2109809
Stable URL: http://www.jstor.org/stable/2109809
Page Count: 10
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Competing Compatibility Standards and Network Externalities in the PC Software Market
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Abstract

This paper is an empirical study of the value of four file compatibility standards for transferring data in the PC software market. The results are that only the LOTUS file compatibility standard is significant in explaining price variations and it is significant in both the (1) spreadsheet and (2) database management system markets. This supports the hypothesis that the personal computer software market exhibits complementary network externalities.

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