TY - JOUR
T1 - The effects of one-way compatibility on technology adoption in systems markets
AU - Nahm, Jae
N1 - 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.
PY - 2008/9
Y1 - 2008/9
N2 - 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.
AB - 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.
KW - Backward compatibility
KW - Network effects
KW - One-way compatibility
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U2 - 10.1016/j.infoecopol.2008.05.002
DO - 10.1016/j.infoecopol.2008.05.002
M3 - Article
AN - SCOPUS:49749101169
SN - 0167-6245
VL - 20
SP - 269
EP - 278
JO - Information Economics and Policy
JF - Information Economics and Policy
IS - 3
ER -