Technology Standardization Battles: An Agent Based Analysis

A competition between two or more technologies for becoming the dominant technological standard is a regular occurrence and some popular examples include media formats, Internet browsers, operating systems, game consoles etc. This study introduces an Analytical Framework for Technological Standardization (AFTS) that helps analyze competitors involved in a technical standard competition. This paper presents case studies of technological standardization which include success of QWERTY keyboard standard, mobile operating systems like iPhone and Android, and the Fourth Generation (4G) Broadband Wireless Access (BWA) standard. Network economic concepts are useful to explain the market factors and tactics that contenders use to compete. Researchers conducting similar sorts of analysis have also relied on using economic concepts. The study extends the AFTS to set up Agent Based Model (ABM) simulations in order to mimic market conditions. The main focus of simulation models is on keyboard standard battle (historic) and the 4G BWA competition (unsettled) while employing multi methodological techniques. The ABM is set up to simulate a market with consumers and technology providers. By simulating several scenarios we can learn and explain what constitutes key drivers for these competitions. The ability to simulate a unsettled competition will be of value to the stakeholders involved.

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