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Wiley InterScience

The Journal of Industrial Economics

The Journal of Industrial Economics

Volume 47 Issue 1, Pages 1 - 40

Published Online: 27 Mar 2003

Journal compilation © 2009 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics



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Technological Competition and the Structure of the Computer Industry
Timothy F. Bresnahan & Shane Greenstein
  1 Stanford University, Department of Economics, Stanford, CA 94305-6072, USA. email: Timothy.Bresnahan@Stanford.edu,  2Kellogg Graduate School of Management, Northwestern University, 2001 Sheridan Road, Leverone Hall, Evanston, IL 60208-2113, USA.email: s-greenstein1@nwu.edu
Copyright Blackwell Publishers Ltd 1999

ABSTRACT

We examine thirty years of computer industry market structure. Our analysis explains the persistence of dominant computer firms, their recent decline, and the changing success of competitive entry. It emphasizes the importance of technological competition between computer 'platforms', not firms. This aspect of competition has changed little over time. Two things did change. Young platforms serving newly founded segments eventually challenged established platforms across segment boundaries through a process of indirect entry. Vertically disintegrated platforms have led to divided technical leadership in important segments. The result is an industry with far more technological competition.


DIGITAL OBJECT IDENTIFIER (DOI)
10.1111/1467-6451.00088 About DOI

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