The effects of one-way compatibility on technology adoption in systems markets

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)269-278
Number of pages10
JournalInformation Economics and Policy
Volume20
Issue number3
DOIs
Publication statusPublished - 2008 Sep 1
Externally publishedYes

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Keywords

  • Backward compatibility
  • Network effects
  • One-way compatibility

ASJC Scopus subject areas

  • Economics and Econometrics

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