A unified economic model of standard diffusion: The impact of standardization cost, network effects, and network topology

This paper is motivated by the following question: What drives the diffusion of a communication standard and what results can we expect? Past literature provides many instructive but mostly unrelated answers. Frequent findings are startup problems, penguin effects, and tendencies toward monopoly. But substantial problems in applying the models to concrete standardization problems reveal that the dynamics are probably more complex. Not all networks are ultimately conquered by a single standard once it has attracted a certain number of users. And not all diffusion results are either complete or no standardization.

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Keywords:

Computational analysis, Diffusion, Effects, Equilibrium, Network effects, Noncooperative games, Penguin effects, Standardization, Typology

Additional information:

Language(s):English
AuthorsWeitzel, Tim (Dept of Information Systems, Otto Friedrich University, Bamberg, Germany), Beimborn, Daniel (Institute of Information Systems, Johann Wolfgang Goethe University, Frankfurt, Germany), König, Wolfgang (Institute of Information Systems, Johann Wolfgang Goethe University, Frankfurt, Germany)
Publisher:Management Information Systems Research Center, Carlson School of Management, University of Minnesota, USA
Keywords:Computational analysis, Diffusion, Effects, Equilibrium, Network effects, Noncooperative games, Penguin effects, Standardization, Typology