Simulation of the impact of network topologies on standardization decisions

Abstract

Choosing the right set of communication standards is fundamental in any kind of interaction, especially in the coordination of economic activities. The related decision problem, generally referred to as the ldquostandardization problemrdquo, mainly results from interdependencies due to positive network effects. This paper describes the standardization problem, an abstract decision model for assessing the economic value of using standards in communication networks. Previous research investigates the standardization problem mostly in random networks. Motivated by the network analysis of recently examined other network topologies, this paper presents a comparison of simulation results for standardization problems in random, small world and scale free networks. It shows amongst others that random networks exhibit a special solution structure tending to complete standardization. Small world and scale free networks on the other hand, have different solution structures, one with partial standardization as the most common optimal solution and complete standardization, depending from their specific creation parameters.