Publication: Firms' strategies and network externalities: empirical evidence from the browser war.
Issued Date
2006
Resource Type
Language
eng
Rights
Mahidol University.
Bibliographic Citation
Journal of High Technolgy Management Research. Vol. 17, (2006), 27-42
Suggested Citation
Yingyot Chiaravutthi Firms' strategies and network externalities: empirical evidence from the browser war.. Journal of High Technolgy Management Research. Vol. 17, (2006), 27-42. Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/8782
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Title
Firms' strategies and network externalities: empirical evidence from the browser war.
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Abstract
This paper analyzes adoption decisions of Internet browser software with
the focus on firms’ strategies and market consequences, and the existence
of network externalities. Since the early 1995, Microsoft employed many
strategies in order to diminish the popularity of Netscape’s Navigator and
Communicator. Microsoft’s Internet Explorer finally won the war in
1999, but this led to the antitrust lawsuit. Based on the GVU WWW User
Survey data in 1997 and 1998, the results from logit models show that
network externalities existed in Navigator and Communicator although
they were diminishing through time. The success of Internet Explorer
was driven by Microsoft’s free and bundling strategies, not by the product
itself nor by network externalities.