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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 743 |
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The possibility of "winner-take-all" in a technological competition creates powerful incentives for strategic competition. The incentive for strategic competition, however, is not unique to winner-take-all situations. In any case, it is the fact of increasing returns to adoption that motivates aggressive competition among technologies...
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The incentive for strategic competition, however, is not unique to winner-take-all situations. In any case, it is the fact of increasing returns to adoption that motivates aggressive competition among technologies. This is why Arthur claims that "competition between technologies usually becomes competition between bandwagons, and adoption markets display both a corresponding instability and a high degree of unpredictability"
One of the most straight-forward case histories is the early VCR market...
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