The Economics of Dominant Technical Architectures: The Case of the Personal Computer Industry

Ike Chang

Expert InsightsPublished 1994

The predominance of a single architectural standard in the personal computer (PC) industry has enabled certain firms to attain near monopoly positions in their respective markets. This paper discusses how Intel and Microsoft obtained near-monopoly positions in their respective markets due to intellectual property rights and how their strong market positions enabled them to innovate beyond their competitors. It is argued, therefore, that public policy motives to limit their market power by weakening the intellectual property rights of market-leading companies such as Intel and Microsoft should not take precedence over the positive role played by intellectual property in inducing such companies to make innovative investments that benefit society over the long run.

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1994
  • Pages: 41
  • Document Number: P-7888

Citation

Chicago Manual of Style

Chang, Ike, The Economics of Dominant Technical Architectures: The Case of the Personal Computer Industry. Santa Monica, CA: RAND Corporation, 1994. https://www.rand.org/pubs/papers/P7888.html.
BibTeX RIS

Research conducted by

This publication is part of the RAND paper series. The paper series was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.