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• W2183614025 abstract "This research examines how local network effects contribute to the costs of switching vendors, and how such effects differ according to the organization of the IT function. Our results indicate that the costs to ensure compatibility among local area network devices is a major source of switching costs in the markets for routers and switches, and that switching costs increase with the size of a buyer’s installed base. Moreover, we show that when IT purchase decisions are decentralized, the effect of IT vendor choice on other units within the same firm are discounted. We also study how changes in network architecture lower switching costs by reducing the importance of prior complementary investments in learning and configuration on vendor choice. While we show that the introduction of switches may have temporarily reduced switching costs for router buyers investing in switches, the costs of switching vendors remains significant." @default.
• W2183614025 created "2016-06-24" @default.
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• W2183614025 date "2008-01-01" @default.
• W2183614025 modified "2023-09-26" @default.
• W2183614025 title "Switching Costs, Network Effects, and Buyer Behavior in IT Markets" @default.
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