Which Product Will Survive To Be Standard?: Technology Adoption And The Role Of Governments

Abstract

While several surveys on technology diffusion have been undertaken, few attempts have been made to synthesize existing research to provide a framework for examining the role of governments.  Is government intervention really required to remedy market failures caused by network externalities?  This paper covers recent developments in this area, focusing on works in stochastic evolutionary game theory.  We relate the results of equilibrium selections to the role of governments. JEL classification: L1, L53 Keywords: Path Inefficiency; Market Failure; Network Externalities