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Economic Phenomenon in Computer Technology

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Executive Summary

This is an overview of economic phenomenon that is vital for high-technology industries. Topics covered include personalization of products and prices, versioning, bundling, switching costs, lock-in, economies of scale, network effects, standards, and systems effects. Most of these phenomena are present in conventional industries, but they are particular important for technology-intensive industries. The authors provide a survey and review of recent literature and examine some implications of these phenomena for corporate strategy and public policy.

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