“…then came Cisco, and the rest is history”: a ‘history friendly’ model of the Local Area Networking industry

Fontana, Roberto ; Zirulia, Lorenzo (2015) “…then came Cisco, and the rest is history”: a ‘history friendly’ model of the Local Area Networking industry. Bologna: Dipartimento di Scienze economiche DSE, p. 52. DOI 10.6092/unibo/amsacta/4163. In: Quaderni - Working Paper DSE (993). ISSN 2282-6483.
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Abstract

We study the role that switching costs, compatibility, and mergers and acquisitions, play in influencing the evolution of a multi-market industry. By looking at the case of the Local Area Networking industry, we propose a ‘history friendly model’ to replicate its evolution during the 1990s. Our model explains how a firm can start from a dominant position in one of the existing markets and exploit switching costs and compatibility to enter a new market when it opens. Mergers and acquisitions also play an important role as the new market is pioneered by a new start-up, which is soon acquired by the dominant incumbent. As a result of the acquisition, the acquiring firm becomes leader also in the new market.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Fontana, Roberto
Zirulia, Lorenzo
Keywords
Simulation, History Friendly Models, Switching Costs, Compatibility
Subjects
ISSN
2282-6483
DOI
Deposit date
10 Feb 2015 11:50
Last modified
28 Oct 2015 13:23
URI

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