Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147497
Authors: 
Weghake, Jens
Grabicki, Fabian
Year of Publication: 
2016
Series/Report no.: 
TUC Working Papers in Economics 17
Abstract: 
Researchers disagree about the relevance of the so called QWERTY-phenomenon which simply means to get stuck in a bad equilibrium. There exists two contrary parties. One side says that the major influence for market success comes from greater quality. In consequence an inferior market player should not persist and the possibility of the QWERTY-phenomenon is denied by this party. The opposite side emphasize the importance of network effects which can lead to lock-ins in inferior situations. This papers investigates this debate. We demonstrate that the missing consideration of the status quo bias in previous studies leads to a rejection of the QWERTY-phenomenon. We give several examples of different industries with inferior market share leaders. However, we suggest that this phenomenon is just a temporary harm and the lock-in could be overcome by a specific form of Schumpeterian creative destruction. Therefore we claim that even if lock-ins exist it is no problem as long as innovative market participants have the opportunity to develop and introduce new business models.
Subjects: 
platform selection
two-sided markets
status quo bias
QWERTY-phenomenon
creative destruction
JEL: 
D43
L13
O33
O38
Document Type: 
Working Paper

Files in This Item:
File
Size
527.45 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.