The Compound Impact of Network Effects, Critical Mass, and Standartization on Competition in the Operating System Market

Viktoria S. Bogolyubova
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Abstract

The competition policy mechanisms in specific sectors of the economy work out, provided that balanced protection tools are used, and incentives are maintained to launch a new product or technology onto the market. However, strong network effects lead to the presence of a small number of manufacturers or even a single player, which hinders the spread of alternative products and contributes to a single product network formation. The relevance of this research is driven by the need to competition analysis in the software market affected by the network effects. The purpose of this review article is to justify the need for a compound impact analysis of network effects, critical mass and standardization as an assessment optimization tool of the competition state in the two- sided software market, specifically in the operating systems markets. The object of the research is an operating system itself, and the subject is the influence of network effects, critical mass and standardization on competitive processes in the operating systems market. The following issues were performed: the results systematization of theoretical studies and approaches to econometric modeling of network externalities, the strategies identification for analysis of standards and installed base of users and sales, introduction of the operating system and software concepts, the development of recommendations for analysis of the phenomenon of network effects with an emphasis on the standardization process in the furtherance of competition and industrial policy. Analysis of the examined phenomena impact shows that the introduction of a generally accepted network effects definition at the legislative level, distinction between the direct and indirect network effects, consideration of this phenomenon as a barrier to entry into the market, and concord of the network effects and standard setting theory can decrease the possibility of type I and II errors in the law enforcement practice.
网络效应、临界质量和标准化对操作系统市场竞争的复合影响
只要使用平衡的保护工具,并保持向市场推出新产品或技术的奖励,特定经济部门的竞争政策机制就会发挥作用。然而,强大的网络效应导致少数制造商甚至单一参与者的存在,这阻碍了替代产品的传播,并有助于单一产品网络的形成。本研究的相关性是由需要在受网络效应影响的软件市场竞争分析驱动的。这篇综述文章的目的是证明有必要对网络效应、临界质量和标准化进行复合影响分析,作为双边软件市场(特别是操作系统市场)竞争状态的评估优化工具。本研究的对象是操作系统本身,研究的主题是网络效应、临界质量和标准化对操作系统市场竞争过程的影响。进行了以下问题:理论研究的结果系统化和网络外部性计量经济建模的方法,标准和用户和销售的安装基础分析的策略确定,操作系统和软件概念的介绍,为分析网络效应现象提出建议,重点是促进竞争和产业政策的标准化过程。对这些现象影响的分析表明,在立法层面引入被普遍接受的网络效应定义,区分直接和间接网络效应,将这一现象视为进入市场的障碍,并将网络效应与标准制定理论相协调,可以减少执法实践中出现第一类和第二类错误的可能性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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