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Adoption of Information Technology Under Network Effects

机译:网络效应下信息技术的采用

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Because information technologies are often characterized by network effects, compatibility is an important issue. Although total network value is maximized when everyone operates in one compatible network, we find that the technology benefits for the users depend on vendor incentives, which are driven by the existence of "de facto" or "de jure" standards. In head-to-head competition, customers are better off "letting a thousand flowers bloom," fostering fierce competition that results in a de facto standard if users prefer compatibility over individual fit, or a split market if fit is more important. In contrast, firms that sponsor these products are better off establishing an up-front, de jure standard to lessen the competitive effects of a network market. However, if a firm is able to enter the market first by choosing a proprietary/incompatible technology, it can use a "divide-and-conquer" strategy to increase its profit compared with head-to-head competition, even when there are no switching costs. When there is a first mover, the early adopters, who are "locked in" because of switching costs, never regret their decision to adopt, whereas the late adopters, who are not subject to switching costs, are exploited by the incumbent firm. In head-to-head competition, customers are unified in their preference for incompatibility when there is a first mover; late adopters prefer de jure compatibility because they bear the brunt of the first-mover advantage. This again underscores the interdependence of user net benefits and vendor strategies.
机译:由于信息技术通常具有网络效应,因此兼容性是一个重要的问题。尽管当每个人都在一个兼容的网络中运行时,总网络价值会最大化,但我们发现,为用户带来的技术收益取决于供应商的激励措施,这取决于“事实上”或“法律上”标准的存在。在面对面的竞争中,客户最好不要“开出一朵鲜花”,而要进行激烈的竞争,如果用户更喜欢兼容性而不是个人适应,那么竞争就会形成事实上的标准,或者如果适应更为重要,则会导致市场分裂。相比之下,赞助这些产品的公司最好建立起法律上预先规定的标准,以减少网络市场的竞争影响。但是,如果公司能够通过选择专有/不兼容的技术首先进入市场,那么即使没有竞争,它也可以使用“分而治之”的策略来增加其利润。转移成本。当有先行者时,由于转换成本而被“锁定”的早期采用者,永远不会后悔自己采用的决定,而不受转换成本约束的晚期采用者被老牌公司所利用。在面对面竞争中,先行者会优先考虑不兼容的客户;较晚的采用者更喜欢法律上的兼容性,因为他们首当其冲的优势首当其冲。这再次强调了用户净收益与供应商策略之间的相互依赖性。

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