A unified economic model of standard diffusion: The impact of standardization cost, network effects, and network topology

  • Weitzel T
  • Beimborn D
  • Koenig W
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Abstract

This paper is motivated by the following question: What drives the diffusion of a communication standard and what results can we expect? Past literature provides many instructive but mostly unrelated answers. Frequent findings are startup problems, penguin effects, and tendencies toward monopoly. But substantial problems in applying the models to concrete standardization problems reveal that the dynamics are probably more complex. Not all networks are ultimately conquered by a single standard once it has attracted a certain number of users. And not all diffusion results are either complete or no standardization.

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Authors

  • Tim Weitzel

  • Daniel Beimborn

  • Wolfgang Koenig

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