Econ 483_Lecture 15_Indirect networks

Applications need not be under the control of a

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Unformatted text preview: be under the control of a platform owner. Prices for each piece of the system depend on the breadth of IPR; not on the market outcome of a dominant standard Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Indirect networks Open standards Cases High-tech industry E Open standards An open standard might be the best of all possible worlds. Drawbacks: If the network bene…ts to using a single application are huge, openness may transfer the market power from the platform owner to the application owner. Openness can be hard to achieve if IP is available for interfaces. Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. Indirect networks Open standards Cases High-tech industry - Will proprietors always choose closed interfaces? - What is the best business strategy? Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. E Indirect networks Open stand...
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This note was uploaded on 03/16/2014 for the course ECON 483 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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