Java and object standardization in the Internet – A way to more competition in the software industry?

Ralf Menkhoff ()

Netnomics, 1999, vol. 1, issue 2, 107-126

Abstract: The computer software market is a textbook example of network externalities: if a user decides to work with a specific program, the utility of all other users of the same product increases. This increase in utility is not compensated for by the market; thus one speaks of network externalities. Such network externalities lead to a natural tendency towards quasi standardization, favoring a high market concentration on the supply side. This article demonstrates that Java programs combined with an appropriate object standardization may reduce the influence of the network externalities, giving smaller companies a better chance to compete successfully. Copyright Kluwer Academic Publishers 1999

Keywords: Java; Internet; object standardization; network externalities; software industry (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1023/A:1019185305465

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