Adoptions and Orphans in the Early Microcomputer Market

Neil Gandal · Shane M. Greenstein · David Salant

92 citations0/0 files storedJournal of Industrial Economics

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Digital Platforms and Economics History of Computing Technologies Innovation Diffusion and Forecasting

Abstract

In this paper we examine the development of the microcomputer market in the early 1980s. CP/M, a widely‐adopted operating system, was orphaned by the user and the development communities. A new operating system, DOS, and a new hardware platform, the IBM PC, became the predominant industry standard. We examine the statistical relationship between data that reflects hardware and software sales for the competing platforms. We conclude that the economic processes underlying the development of DOS differed from those underlying CP/M and that many of these differences related to the role of software development.

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References

1969Investigating Causal Relations by Econometric Models and Cross-spectral Methods 1980Macroeconomics and Reality 1986Technology Adoption in the Presence of Network Externalities 1992Product Introduction with Network Externalities 1999Technological Competition and the Structure of the Computer Industry 1992Network Effects, Software Provision, and Standardization 1996Technical Progress and Co-Invention in Computing and in the Uses of Computers 1990Network effects without network externalities

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