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MyASPN >> Mail Archive >> xml-dev
xml-dev
RE: [xml-dev] A market view
by Bullard, Claude L (Len) other posts by this author
Apr 30 2002 7:22PM messages near this date
RE: [xml-dev] A market view | Re: [xml-dev] Re: I can XInclude where I [expletive deleted] want to
A.k.a., lock-in.  See http://www.utdallas.edu/~liebowit/paths.html
for a discussion of this topic and so-called, path dependence

"Do economies and markets make remediable errors in the choice of products? Does the economy
 "lock-in" to these incorrect choices even when the knowledge that these choices are incorre
ct is readily available? The literature of path dependence may be understood to argue that t
hese lock-ins and errors occur, even in a world characterized by voluntary decisions and ind
ividually maximizing behavior. In this paper we examine path dependence and illustrate three
 different forms of the term, each having a different implication regarding market errors an
d lock-in. Two of these meanings are common in the economy but provide no support for the cl
aims that remediable errors occur. The third meaning, which does imply irremediable error, w
e show to be based on restrictive assumptions that are likely to be overcome in the real wor
ld. The analysis is illustrated by examining the market's choice of videorecorder formats."

len

-----Original Message-----
From: Didier PH Martin [mailto:martind@[...].com]

This is a phenomenon Regis McKenna [1] calls the word or
mouth effect, other have called that the network effect. In fact a whole
sector of economics is about this topic (network economics). It basically
state that the more people are using a particular product, the more this
product will sell. This is also known in sociology or in behavioral finance
as the herd effect.

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