일상, 생각
Increasing return to adoption
morphix
2007. 4. 18. 01:01
In economics, decreasing return to adoption(DRA) is assumed in the technology adoption for the production. Adoption means a technology adoption, choosing a technology to produce among several things. That is, the more the use of a technology adoption continues, the lesser the profit by the technology. Thus, a rational producer would change the technology with another one after producing up to a specifit point. If not DRS, a specific technology would rule the market.
However, in some industry, increasing return to adoption(IRA) appears. The fight between BETA and VHS is a good example. The more VHS used, the more BETA disappeared. And the model which explains the DRA phenomenon is Arthur's Increasing return model. According to the model, after the competition between two participants(=technology), the winner takes all the market.
However, in some industry, increasing return to adoption(IRA) appears. The fight between BETA and VHS is a good example. The more VHS used, the more BETA disappeared. And the model which explains the DRA phenomenon is Arthur's Increasing return model. According to the model, after the competition between two participants(=technology), the winner takes all the market.