Information Theory

Download e-book for iPad: Economics of Standards in Information Networks by Tim Weitzel

By Tim Weitzel

ISBN-10: 3790800767

ISBN-13: 9783790800760

ISBN-10: 3790826642

ISBN-13: 9783790826647

Standards play a popular position in platforms characterised by means of interplay. In info platforms, criteria offer for compatibility and are a prerequisite for collaboration merits. extra ordinarily talking, criteria represent networks. during this paintings, a standardization framework in line with an research of deficiencies of community impact idea and a video game theoretic community equilibrium research is built. basic determinants of diffusion techniques in networks (e.g. community topology, agent measurement, put in base) are pointed out and integrated right into a computer-based simulation version. therefore, commonplace community behaviour (specific diffusion styles) could be defined and plenty of findings from conventional community impression thought will be defined as unique situations of the version at specific parameter constellations (e.g. low cost, excessive density). in this foundation, resolution concepts for standardization difficulties are built, and a methodological direction in the direction of a unified idea of networks is proposed.

"... a vital contribution to the economics of standardization, and the consequences make the e-book a needs to for everybody operating within the field." (International magazine of IT criteria and Standardization Research)

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Extra resources for Economics of Standards in Information Networks

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This will be elaborated in more detail in sections 3 to 5. David/Greenstein (1990, 12-24) give an extensive overview of fIndings in sponsored standardization processes. Interesting phenomena include partial compatibility, gateways [BraunsteinlWhite 1985] or mix and match markets [MatuteslRegibeau 1988]. Sponsored technologies are in a particularly strong position when competing with an unsponsored technology, since the former is capable of being strategically priced. 7 Pareto-inferior market results and monopolies In many cases, the existence of network effects leads to Pareto-inferior market results.

Small early events determine the fInal outcome in a non-ergodic process. ~ Under diminishing returns the adoption process becomes a random walk with reflecting barriers. The market will be shared. Table 3: Properties ofthe three regimes [Arthur 1989, 121) Comparable results are presented by Cowan (1991), David (1987). Habermeier (1989) shows that rational expectations from future intertemporal spillovers may eliminate the path-dependent property of the diffusion process, at the same time reducing the time taken to lock-in.

Instances in which initial conditions lead to regrettable outcomes (that are costly to change) but where the inferiority of a chosen path was unknowable at the time of choice (and when superior paths are recognized only later) are called second-degree path dependence. Given the assumed limitations on knowledge, they are not "inefficient in any meaningful sense". ~ The outcome is a remediable inefficiency: instances in which initial conditions lead to an outcome that is inefficient while a "feasible arrangement for recognizing and achieving a preferred outcome [exists or existed], but that outcome is not obtained" are called third-degree path dependence.

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Economics of Standards in Information Networks by Tim Weitzel


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