Econ 483_Lecture 15_Indirect networks

Based on the dos operating system open interfaces

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Unformatted text preview: g system open interfaces; vendors were encouraged to enter the market & provide a rich supply of applications Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. E Indirect networks Open standards Cases High-tech industry Openness & entry: Apple vs IBM Though, the open standards also invited entry of clones - e.g. Compaq & Dell into the computer hardware market, in direct competition with IBM. Open standards allow the second comer to gain a foothold in the market. Like IBM, its success came at the cost of enabling competition. ! In subsequent years, the market shares of Apple & the PC reversed. Lecture 15: Indirect networks, Econ483: Econ of Innovation & Technology, Evangelia Chalioti c A ll rights reserved. E Indirect networks Open standards Cases High-tech industry Openness & entry Best system for society: open interfaces with appropriate IP for applications If an entrant succeeds, it will have changed the market structure for one of closed standards to one of open standards. Lecture 15: Indire...
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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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