The effects of one-way compatibility on technology adoption in systems markets

Jae Nahm

doi:10.1016/j.infoecopol.2008.05.002

The effects of one-way compatibility on technology adoption in systems markets

Jae Nahm

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

Abstract

This paper analyzes the effects of one-way compatibility on technology adoption in a market that is characterized by a free-entry condition on the software side. We show that hardware-backward compatibility increases a new-generation hardware firm's profit; the effects of software-backward compatibility on the hardware firm's profits depend on the distribution of consumer types.

Original language	English
Pages (from-to)	269-278
Number of pages	10
Journal	Information Economics and Policy
Volume	20
Issue number	3
DOIs	https://doi.org/10.1016/j.infoecopol.2008.05.002
Publication status	Published - 2008 Sept
Externally published	Yes

Bibliographical note

Funding Information:
I am grateful to Adam Brandenburger, Drew Fudenberg, Rena Henderson, Doh-shin Jeon, Sonku Kim, Eric Maskin, Tomas Sjostrom, Abe Wickelgren, to participants in the conference at Toulouse (Economics of the Software and Internet Industries), and to participants in the Harvard Industrial Organization seminar. I also thank Neil Gandal and Patrick Rey for helpful comments and suggestions. This paper gets financial support from Sogang University, Grant No. 200701017.01. All errors are my own.

Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.

Keywords

Backward compatibility
Network effects
One-way compatibility

ASJC Scopus subject areas

Economics and Econometrics
Management, Monitoring, Policy and Law

Access to Document

10.1016/j.infoecopol.2008.05.002

Cite this

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abstract = "This paper analyzes the effects of one-way compatibility on technology adoption in a market that is characterized by a free-entry condition on the software side. We show that hardware-backward compatibility increases a new-generation hardware firm's profit; the effects of software-backward compatibility on the hardware firm's profits depend on the distribution of consumer types.",

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The effects of one-way compatibility on technology adoption in systems markets

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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