Standardization, Compatibility, and Innovation

Joseph Farrell () and Garth Saloner

RAND Journal of Economics, 1985, vol. 16, issue 1, 70-83

Abstract: There are often benefits to consumers and to firms from standardization of a product. We examine whether these standardization benefits can "trap" an industry in an obsolete or inferior standard when there is a better alternative available. With complete information and identical preferences among firms the answer is no; but when information is incomplete this "excess inertia" can occur. We also discuss the extent to which the problem can be overcome by communication.

Date: 1985
References: Add references at CitEc
Citations: View citations in EconPapers (659)

Downloads: (external link)
http://links.jstor.org/sici?sici=0741-6261%2819852 ... O%3B2-Q&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Standardization, Compatibility and Innovation (1984)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rje:randje:v:16:y:1985:i:spring:p:70-83

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().