Title
Technological Standards with Local Externalities and Decentralized Behaviour
Author
Robin Cowan, and John H. Miller
Date
1/01/2005
(Original Publish Date: 1998)
(Original Publish Date: 1998)
Abstract
We model a situation in which agents must choose between two technologies that operate under local, positive network externalities. We find that decentralized behaviour can lead to the emergence of a technical standard, but can also result in a variety of other equilibria. Policy to eliminate non-standardized equilibria can be effected, but in some cases it may be very costly.
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