A note on critical masses, network externalities and converters

Article Abstract:

Superior technological standards have smaller critical mass in order to displace inferior alternatives. This study builds on the Witt model to show that critical mass of a given technology depends on its efficiency and compatibility with an existing standard, hence more efficient technologies need not have smaller critical masses. Also discussed are some consequences for the economics of converters and egateway technologiesE.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Technical Standards Programs, Economic aspects, High technology, Technical standards

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Bundling new products with old to signal quality, with application to the sequencing of new products

Article Abstract:

The theory of informational leverage in the context of bundling, a product of established quality to one of unknown quality that can alleviate problem of asymmetric information encountered in the latter market, is discussed. It is further suggested that leveraging reputation in one market into another has implications for the timing of new product introductions.

United States, Evaluation, Influence, Packaging machinery, Leverage (Finance), Leverage

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