Standardization and Expectations [Paperback]

Over the last decades, technological progress has brought about a multitude of standardization problems. For instance, compatibility standards ensure the interoperability of goods, which is of decisive importance when users face positive externalities in consumption. Consumers' expectations are key to the problem of whether a new technology will prevail as de-facto standard or not. Early adopters must be confident that the network good will be successful. Thus, it may be worthwhile for firms to influence consumers' expectations. Consisting of three models on various aspects of standardization and expectations, this book aims at deepening our understanding of how standards and expectations interact. The models are applied to problems such as Inter-Technology vs. Intra-Technology Competition and Standardization of Nascent Technologies .Over the last decades, technological progress has brought about a multitude of standardization problems. For instance, compatibility standards ensure the interoperability of goods, which is of decisive importance when users face positive externalities in consumption. Consumers' expectations are key to the problem of whether a new technology will prevail as de-facto standard or not. Early adopters must be confident that the network good will be successful. Thus, it may be worthwhile for firms to influence consumers' expectations. Consisting of three models on various aspects of standardization and expectations, this book aims at deepening our understanding of how standards and expectations interact. The models are applied to problems such as Inter-Technology vs. Intra-Technology Competition and Standardization of Nascent Technologies .The Economics of Standardization: Basic Concepts.- Standardization of Educational Signals and Job Matching.- Inter-Technology versus Intra-Technology Competition in Network Markets.- Standardization of Nascent Technologies: The Tradeoff between Early Standardization and Experimentation.- Summary of Fil3Ä