Citation
R. Cowan et Jh. Miller, TECHNOLOGICAL STANDARDS WITH LOCAL EXTERNALITIES AND DECENTRALIZED BEHAVIOR, Journal of evolutionary economics, 8(3), 1998, pp. 285-296
Citations number
16
Categorie Soggetti
Economics
Journal title
ISSN journal
09369937
Volume
8
Issue
3
Year of publication
1998
Pages
285 - 296
Database
ISI
SICI code
0936-9937(1998)8:3<285:TSWLEA>2.0.ZU;2-C
Abstract
We model a situation in which agents must choose between two technolog
ies 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.