Standardization, Compatibility, and Innovation
There are often benefits to consumers and to firms from standardization of a product. We examine whether these standardization benefits can "trap" an industry in an obsolete or inferior standard when there is a better alternative available. With complete information and identical preferenc...
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| Veröffentlicht in: | The Rand journal of economics 1985-04, Vol.16 (1), p.70-83 |
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| container_title | The Rand journal of economics |
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| creator | Farrell, Joseph Saloner, Garth |
| description | There are often benefits to consumers and to firms from standardization of a product. We examine whether these standardization benefits can "trap" an industry in an obsolete or inferior standard when there is a better alternative available. With complete information and identical preferences among firms the answer is no; but when information is incomplete this "excess inertia" can occur. We also discuss the extent to which the problem can be overcome by communication. |
| doi_str_mv | 10.2307/2555589 |
| format | Article |
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Saloner, Garth</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c365t-784dd5847e77261c14b2bc805056fcd51fea8031926c236b91747e8ab250bde63</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1985</creationdate><topic>Consumer goods</topic><topic>Economic benefits</topic><topic>Economic externalities</topic><topic>Economic models</topic><topic>Economies of scale</topic><topic>Emerging technology</topic><topic>Government standards</topic><topic>Inertia</topic><topic>Innovations</topic><topic>Mathematical analysis</topic><topic>Nash equilibrium</topic><topic>Oligopoly</topic><topic>Product innovation</topic><topic>Standardization</topic><topic>Technological innovation</topic><topic>Technology</topic><topic>Typewriters</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Farrell, Joseph</creatorcontrib><creatorcontrib>Saloner, Garth</creatorcontrib><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>Periodicals Index Online Segment 22</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access & Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access & Build (Plan A) - APAC</collection><collection>Primary Sources Access & Build (Plan A) - Canada</collection><collection>Primary Sources Access & Build (Plan A) - West</collection><collection>Primary Sources Access & Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - Midwest</collection><collection>Primary Sources Access & Build (Plan A) - North Central</collection><collection>Primary Sources Access & Build (Plan A) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><collection>ProQuest Health & Medical Complete (Alumni)</collection><jtitle>The Rand journal of economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Farrell, Joseph</au><au>Saloner, Garth</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Standardization, Compatibility, and Innovation</atitle><jtitle>The Rand journal of economics</jtitle><date>1985-04-01</date><risdate>1985</risdate><volume>16</volume><issue>1</issue><spage>70</spage><epage>83</epage><pages>70-83</pages><issn>0741-6261</issn><eissn>1756-2171</eissn><coden>RJECEA</coden><abstract>There are often benefits to consumers and to firms from standardization of a product. 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| fulltext | fulltext |
| identifier | ISSN: 0741-6261 |
| ispartof | The Rand journal of economics, 1985-04, Vol.16 (1), p.70-83 |
| issn | 0741-6261 1756-2171 |
| language | eng |
| recordid | cdi_proquest_journals_236567635 |
| source | RePEc; Business Source Complete; Periodicals Index Online; JSTOR Archive Collection A-Z Listing |
| subjects | Consumer goods Economic benefits Economic externalities Economic models Economies of scale Emerging technology Government standards Inertia Innovations Mathematical analysis Nash equilibrium Oligopoly Product innovation Standardization Technological innovation Technology Typewriters |
| title | Standardization, Compatibility, and Innovation |
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