Diamonds Are Forever, Computers Are Not: Economic and by Shane Greenstein

By Shane Greenstein

It is a choice of forty three essays concerning the economics and administration of data know-how markets. the 1st a part of the ebook makes a speciality of occasions, striking beginning dates and longstanding developments. The unifying subject revolves round the position of human financial habit within the face of uncertainty and confusion. The members' purpose is to give an explanation for, train and entertain - to move past the most obvious. the subsequent half includes writing concerning the web. It discusses the improvement of the web advertisement international, and analyzes the macroeconomic aspect of the funding growth and bust regarding web actions. It additionally specializes in the dimension of monetary task within the electronic economic system. moreover, the booklet bargains with how desktops get utilized in enterprises and discusses the Microsoft antitrust case. ultimately, there are lengthy essays approximately financial constraints on strategic habit in markets the place criteria and systems subject.

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Extra info for Diamonds Are Forever, Computers Are Not: Economic and Strategic Management in Computing Markets

Sample text

This change is gradual, and a lot of it seems trivial while it diffuses, but the accumulation of many small things over a period of time results in radically different processes. This transformation is far from over. That said, e-mail’s diffusion possesses some features that corn’s diffusion did not. qxd 27/05/04 6:51 PM Page 32 32 Part I handwritten letter or a voice message. This has had all sorts of unforeseen consequences. This too is a bigger topic for another day, but a few examples will get the point across.

These labels have meaning, since the strategy is, in fact, a firm’s deliberate attempt to build what a non-virtual marketing director would recognize as word-of-mouth or contagion marketing into Internet software applications. The strategy has received its share of hype in the high-tech business press. For example, in June, 1999, The Industry Standard called viral marketing “perhaps the most influential idea in the Internet economy right now:” Such hype is not new to the Web, but does invite a slightly more skeptical approach to understanding this phenomenon.

Here is the typical pattern. Most buyers know they are perennially out of date, but do not have time to catch up. qxd 27/05/04 6:51 PM Page 19 Chapter 4 19 their situations. Buyers learn about technological opportunities as new products are introduced and as old products become obsolete. From the buyer’s perspective, this is like a movie played by a VCR stuck on fast forward. Things change way too fast. In piecemeal fashion, buyers modify the memory and speed of their CPUs, but keep other useful investments in software or peripherals.

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