Network Effect,Large Country Effect and International Competition of Standards

摘要

The market value of standards will increase as the user base expands because of the network effect.Market monopoly tendency which is caused by the positive feedback effect based on the number of users leads to convergence in technical standard.Eventually,such a technical standard will dominate the market.Therefore,in the international competition of standards,when a country has a relatively large user base,even though its technology is no better than that in other countries,it can also make use of its large country effect to win.