Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters

Jay Pil Choi

doi:10.1016/0167-7187(96)01013-2

Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters

Jay Pil Choi

Department of Economics

Research output: Contribution to journal › Article › peer-review

24 Citations (Scopus)

Abstract

This paper analyzes the process of transition in standards between incompatible technologies when converters are available. Contrary to a common presumption that converters facilitate the transition from an old technology to an otherwise incompatible new technology, I find circumstances in which the possibility of transition is blockaded by the existence of converters. In the welfare analysis of converters, a distinction is made between ex ante and ex post efficiency effects. Finally, I also analyze the equilibrium behavior in the provision of converters and compare it to the socially optimal outcome.

Original language	English
Pages (from-to)	825-835
Number of pages	11
Journal	International Journal of Industrial Organization
Volume	14
Issue number	6
DOIs	https://doi.org/10.1016/0167-7187(96)01013-2
Publication status	Published - 1996 Oct

Bibliographical note

Funding Information:
I would like to thank two anonymous referees and Editor Nicholas Economides for their valuable comments which improved the exposition of this paper significantly. The first version of the paper was completed while I was visiting the Center for Economic Research at Tilburg University, whose hospitality and financial support are gratefully acknowledged.

All Science Journal Classification (ASJC) codes

Industrial relations
Aerospace Engineering
Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)
Strategy and Management
Industrial and Manufacturing Engineering

Access to Document

10.1016/0167-7187(96)01013-2

Cite this

@article{a66f2fe0adbd49faa8371ee1cae46498,

title = "Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters",

abstract = "This paper analyzes the process of transition in standards between incompatible technologies when converters are available. Contrary to a common presumption that converters facilitate the transition from an old technology to an otherwise incompatible new technology, I find circumstances in which the possibility of transition is blockaded by the existence of converters. In the welfare analysis of converters, a distinction is made between ex ante and ex post efficiency effects. Finally, I also analyze the equilibrium behavior in the provision of converters and compare it to the socially optimal outcome.",

author = "Choi, {Jay Pil}",

note = "Funding Information: I would like to thank two anonymous referees and Editor Nicholas Economides for their valuable comments which improved the exposition of this paper significantly. The first version of the paper was completed while I was visiting the Center for Economic Research at Tilburg University, whose hospitality and financial support are gratefully acknowledged.",

year = "1996",

month = oct,

doi = "10.1016/0167-7187(96)01013-2",

language = "English",

volume = "14",

pages = "825--835",

journal = "International Journal of Industrial Organization",

issn = "0167-7187",

publisher = "Elsevier Inc.",

number = "6",

}

TY - JOUR

T1 - Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters

AU - Choi, Jay Pil

N1 - Funding Information: I would like to thank two anonymous referees and Editor Nicholas Economides for their valuable comments which improved the exposition of this paper significantly. The first version of the paper was completed while I was visiting the Center for Economic Research at Tilburg University, whose hospitality and financial support are gratefully acknowledged.

PY - 1996/10

Y1 - 1996/10

N2 - This paper analyzes the process of transition in standards between incompatible technologies when converters are available. Contrary to a common presumption that converters facilitate the transition from an old technology to an otherwise incompatible new technology, I find circumstances in which the possibility of transition is blockaded by the existence of converters. In the welfare analysis of converters, a distinction is made between ex ante and ex post efficiency effects. Finally, I also analyze the equilibrium behavior in the provision of converters and compare it to the socially optimal outcome.

AB - This paper analyzes the process of transition in standards between incompatible technologies when converters are available. Contrary to a common presumption that converters facilitate the transition from an old technology to an otherwise incompatible new technology, I find circumstances in which the possibility of transition is blockaded by the existence of converters. In the welfare analysis of converters, a distinction is made between ex ante and ex post efficiency effects. Finally, I also analyze the equilibrium behavior in the provision of converters and compare it to the socially optimal outcome.

UR - http://www.scopus.com/inward/record.url?scp=21444441357&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=21444441357&partnerID=8YFLogxK

U2 - 10.1016/0167-7187(96)01013-2

DO - 10.1016/0167-7187(96)01013-2

M3 - Article

AN - SCOPUS:21444441357

VL - 14

SP - 825

EP - 835

JO - International Journal of Industrial Organization

JF - International Journal of Industrial Organization

SN - 0167-7187

IS - 6

ER -

Do converters facilitate the transition to a new incompatible technology? A dynamic analysis of converters

Abstract

Bibliographical note

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this