Network Effects and Switching Costs in the Market for Routers and Switches

Topics:
Electrical and Electronic
Tags:
Cost,
Network,
Network Effect,
Network Technology,
Networking,
Router,
Routers & Switches
Source:
NET Institute

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Overview: This research examines the impact of switching costs on vendor choice in the market for routers and switches. It shows that despite the use of open standards which attempt to enhance interoperability for equipments from different vendors, vendors in this market are able to maintain high switching costs. Because routers and switches are networked goods, switching costs may arise from prior investments made at the same establishment and/or at other establishments within the same firm.

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Format: PDF | Size: 595KB | Date: Sep 2003 | Pages: 37

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