Standards Battles and Design Dominance
12 important questions on Standards Battles and Design Dominance
What are two primary sources of increasing returns?
2. Network externalities
What are network externalities?
What are learning effects?
- Higher grades + faster learning
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Network externalitites also arise when complementary goods are important. What are complementary goods?
Additional goods and services that enable or enhance the value of another good. For example, the value of a video game console is directly related to the availability of complementary goods such as video games, peripheral devices, and services such as online gaming.
Why does increasing returns to adoption also imply that technology trajectories are characterized by path dependency? Meaning that relatively small historical events may have a great impact on the final outcome.
Though the technology’s quality and technical advantage undoubtedly influence its fate, other factors, unrelated to the technical superiority or inferiority, may also play important roles. For instance, timing may be crucial; early technology offerings may become so entrenched that subsequent technologies, even if considered to be technically superior, may be unable to gain a foothold in the market.
What is said by the term increasing returns?
When the rate of return (not just gross returns) from a product or process increases with the size of its installed base.
What are examples of advantages created by network externalities?
- Number of users choose certain technology, developers of the technology can invest more in the product
What is a winner-takes-all market?
What are the 6 buyer stages of the technology stand alone value?
- Delivery
- Use
- Supplements
- Maintenance
- Disposal
What are the 6 different utility levers of the technology stand alone value?
- Simplicity
- Convenience
- Risk
- Fun
- Image and environmental friendliness
What is the purpose of the stand alone value?
What are the 3 key values in order to value the technological product?
- Installed base
- Complementary goods
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