The strategic effects of new technology diffusion in system products-the case of recorder industry

• Main Authors: Chao, Chiu-Hua, 趙秋華
• Other Authors: Sun, Bing-Yan
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/11562795626826490721

碩士 === 國立臺北大學 === 合作經濟學系 === 90 === If the market exists two kinds of TV game products with different technology, just like X-Box and Play Station II, which one would the customer choose? How about the technology competition between DVD and VCD, while DVD can read dicks of VCD? These kinds of industries imply the important feature system product, the popularity of software product. Consumer cares about the available of complementary products. If the complementary products are not as many as the previous one, consumer would be ambiguous to make decision even the quality of new product is better than the old ones. Since the system product features the bundle of hardware and software product, this research is modified from Gandel, Kende and Rob’s model. With the goal to increase the install base, this research would evaluate the effects of different strategies the hardware firm taken. The purposes of this research are (1) to evaluate the direct elasticity between the price of the hardware product and the install base. (2) to evaluate the cross elasticity between the density of effective software and the install base. (3) to compare the effects of strategies above. Two-Stage Least Square is adapted to analysis the parameter in the simultaneous equation models. In the period of 1991 to 2000 in the record industry, the research concludes: (1) If the hardware firm would like to motivate consumer to adapt new system from old system, the popularity of software product is necessary to be considered instead of the kinds of software product. (2) The price elasticity of the hardware product is varied by install base. (3) The cross elasticity between the density of effective software and the install base is varied by install base. (4) The ratio of those two strategic effects is stationary. At the same scale of increasing install base, the effect of lowering 1% of the hardware price is equal to increasing 40% units of software sales.