Compatibility control easier for vista software

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ntrol easier for Vista software writers software Platform Security Lifecycle Platform High fixed/low marginal costs, network effects High and switching costs all tend to lead to dominantand firm markets with big first-mover advantage Microsoft philosophy of ‘we’ll ship it Tuesday and Microsoft get it right by version 3’ was quite rational get When building a network monopoly, woo When complementers by skimping on security, and choosing technology like SSL that dumps the compliance costs on the user compliance Once you’re established, lock everything down Other Investment Effects Other Security may depend on best effort (security Security architect), weakest-link (careless programmer) or sum-of-efforts (testing) or Analysis (Akerlof, Varian) suggests firms should Analysis hire more testers, and fewer but better programmers (this is happening!) programmers Security products can be strategic complements Security (and tend to be a lemons market anyway) (and Security product adoption a hard problem unless Security you provide early adopters with local benefits you So very many products fail to get adopted Security and Liability Security Why did digital signatures not take off? Industry thought: legal uncertainty. So EU Industry passed electronic signature law passed But customers and merchants resist transfer of But liability by bankers for disputed transactions liability Best to stick with credit cards, as that way fraud Best is still largely the bank’s problem is Similar resistance to phone-based payment – Similar people prefer prepayment plans because of uncertainty uncertainty Privacy Economics Privacy Gap between stated and revealed preferences! Odlyzko – technology makes price discrimination Odlyzko both easier and more attractive both Varian – interests of consumers and firms not in Varian conflict but information markets fail because of externalities and search costs. Educated consumers opt out more consumers Acquisti et al – people care about privacy when Acquisti buying clothes, but not cameras (some items relate to your image, so are privacy sensitive) relate Externalities cut both ways, though – to be Externalities anonymous, you need to be in a crowd anonymous, Open versus Closed? Open Are open-source syste...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online