Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market (Classic Reprint) - Tapa blanda

Excerpt from Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market

These five factors the large market, the low marginal cost, the high learning costs, the network externalities, and the complementarity relationship with hardware provide opportunities for vendors to price their products strategically, taking into account factors such as industry standards, competitor's installed bases, and discontinuities in the hardware market.

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Erik Brynjolfsson, Schussel Family Professor at MIT's Sloan School of Management and Director of the MIT Center for Digital Business, is the coeditor of "Understanding the Digital Economy: Data, Tools, and Research" (MIT Press).