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Foreword The first essay in Volker Simmering's study in The Evolution of Standards, undertaken while at the Graduate Programme in Law and Economics in cooperation with the Institute of SocioEconomics at the University of Hamburg, examines the effects of "globalization" on the evolution of global standard(). The central result of this essay is that there may be too few global standards and those which do evolve are not necessarily efficient; a result that is at odds with standard economic reasoning. Simmering derives his result from the application evolutionary theory - which is becoming increasingly popular in economics, the social sci ences, and philosophy. This branch of theory focuses on the convergence and selection of equilibria and its attendant reduction of variety. Simmering's study, very interestingly, indicates a major difference in the results of evolu tionary reasoning when applied to the coordination of human interaction to that at the species level. Simmering shows how variety is reduced to produce homogeneity or compatibility; while in biology it has been to show how variety emerges. For example, in his The Origin of Species (1859), Charles Darwin tried to give an interpretation of the characteristics, diversity, and distribution of the various forms of animal and plant life as the result of a historical proc ess involving descent with modification.
List of contents
1. Introduction.- 2. The Economics of Networks, Compatibility and Standardization: Definitions, Basic Concepts and Insights.- 2.1 The Concept of Network Effects.- 2.2 Basic Problems in Competitive Network Markets.- 2.3 Compatibility, Standardization, Harmonization and Integration.- 2.4 Commitments.- 2.5 Compatibility and Competition.- 2.6 Empirical Evidence of Network Effects.- 3. An Evolutionary Approach to Network Effects and Globalization.- 3.1 Introduction.- 3.2 Review of Selected Literature.- 3.3 The Model Setup.- 3.4 Existence of Equilibria.- 3.5 Social Welfare.- 3.6 Does Globalization Lead to Efficient Harmonization of Standards?.- 3.7 Some Interpretations of the Assumptions.- 3.8 Extension: Double Adoptions - Production of Compatibility by Users.- 4. Mandatory or Voluntary Standards?.- 4.1 Introduction.- 4.2 The Effects of Mandatory and Voluntary Standards.- 4.3 The Stability of Variety.- 4.4 Technical Harmonization within the EU.- 4.5 Conclusions.- 5. The Impact of Users' Commitments on Technological Progress in Network Industries.- 5.1 Introduction.- 5.2 Review of Selected Literature.- 5.3 The Model Setup.- 5.4 Equilibria.- 5.5 Welfare Analysis - Commitments and Efficiency of Transition.- 5.6 Should Policy Intervene?.- 5.7Conclusions 161.- Appendix A.- Appendix B.- 6. Voting on Harmonization.- 6.1 Introduction.- 6.2 System Goods, Vertical and Horizontal Compatibility.- 6.3 Majority Voting and Harmonization.- 6.4 Strategic Behavior Under Harmonization Policy.- 6.5 Conclusions.- 7. Summary of Findings.
About the author
Dr. Volker Simmering promovierte bei Prof. Dr. Manfred J. Holler am Graduiertenkolleg "Recht und Ökonomik" der Universität Hamburg.
Summary
Foreword The first essay in Volker Simmering's study in The Evolution of Standards, undertaken while at the Graduate Programme in Law and Economics in cooperation with the Institute of SocioEconomics at the University of Hamburg, examines the effects of "globalization" on the evolution of global standard(). The central result of this essay is that there may be too few global standards and those which do evolve are not necessarily efficient; a result that is at odds with standard economic reasoning. Simmering derives his result from the application evolutionary theory - which is becoming increasingly popular in economics, the social sci ences, and philosophy. This branch of theory focuses on the convergence and selection of equilibria and its attendant reduction of variety. Simmering's study, very interestingly, indicates a major difference in the results of evolu tionary reasoning when applied to the coordination of human interaction to that at the species level. Simmering shows how variety is reduced to produce homogeneity or compatibility; while in biology it has been to show how variety emerges. For example, in his The Origin of Species (1859), Charles Darwin tried to give an interpretation of the characteristics, diversity, and distribution of the various forms of animal and plant life as the result of a historical proc ess involving descent with modification.
