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Competing Compatibility Standards and Network Externalities in the PC Software Market
The Review of Economics and Statistics
Vol. 77, No. 4 (Nov., 1995), pp. 599-608
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/2109809
Page Count: 10
You can always find the topics here!Topics: Spreadsheets, Computer software, Database management systems, Economic externalities, Databases, Prices, Local area networks, Personal computers, Discounts, Developing countries
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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.
The Review of Economics and Statistics © 1995 The MIT Press