Applied multivariate statistical analysis
Applied multivariate statistical analysis
Economic analysis of microcomputer hardware
Communications of the ACM - Special issue on simulation
Hedonic price analysis of workstation attributes
Communications of the ACM
An investigation into sources of network externalities in the packaged PC software market
Information Economics and Policy
Internet: a strategic tool for the software enterprise
Communications of the ACM
Bundling Information Goods: Pricing, Profits, and Efficiency
Management Science
How to Set up and Maintain a World Wide Web Site: The Guide for Information Providers
How to Set up and Maintain a World Wide Web Site: The Guide for Information Providers
Being Digital
Speeding the Net: The Inside Story of NetScape, How It Challenged Microsoft and Changed the World
Speeding the Net: The Inside Story of NetScape, How It Challenged Microsoft and Changed the World
Competing on Internet Time: Lessons from Netscape and Its Battle with Microsoft
Competing on Internet Time: Lessons from Netscape and Its Battle with Microsoft
Opening the "Black Box" of Network Externalities in Network Adoption
Information Systems Research
Network effects and the impact of free goods: an analysis of the web server market
International Journal of Electronic Commerce - Special issue: Electronic commerce and market transformation
A Choice Model for the Selection of Computer Vendors and Its Empirical Estimation
Journal of Management Information Systems
Electronic marketplace-to-marketplace alliances: emerging trends and strategic rationales
ICEC '03 Proceedings of the 5th international conference on Electronic commerce
Electronic frontiers in foreign exchange trading
Communications of the ACM - Interactive immersion in 3D graphics
Proceedings of the 2006 ACM SIGMIS CPR conference on computer personnel research: Forty four years of computer personnel research: achievements, challenges & the future
A hedonic study of network effects in the market for word processing software
Decision Support Systems - Special issue: Economics and information systems
Two-Sided Network Effects: A Theory of Information Product Design
Management Science
Analyzing Complementarities Using Software Stacks for Software Industry Acquisitions
Journal of Management Information Systems
Design and Ownership of Two-Sided Networks: Implications for Internet Platforms
Journal of Management Information Systems
A hedonic study of network effects in the market for word processing software
Decision Support Systems - Special issue: Economics and information systems
Information and Management
User response to free trial restrictions: a coping perspective
HCI'07 Proceedings of the 12th international conference on Human-computer interaction: interaction design and usability
Optimal Bundling of Technological Products with Network Externality
Management Science
Information Systems Research
Impact of network effects and diffusion channels on home computer adoption
Decision Support Systems
An Interdisciplinary Perspective on IT Services Management and Service Science
Journal of Management Information Systems
Organizational adoption of open source software
Journal of Systems and Software
Electronic Commerce Research and Applications
Examining network externalities and network structure for new product introduction
Information Technology and Management
Information Systems Research
International Journal of Open Source Software and Processes
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Prior theoretical research has established that many software products are subject to network effects and exhibit the characteristics of two-sided markets. However, despite the importance of the software industry to the world economy, few studies have attempted to empirically examine these characteristics, or several others which theory suggests impact software price. This study develops and tests a research-grounded model of two-sided software markets that accounts for several key factors influencing software pricing, including network externalities, cross-market complementarities, standards, mindshare, and trialability. Applying the model to the context of the market for Web server software, several key findings are offered. First, a positive market share to price relationship is identified, offering support for the network externalities hypothesis even though the market examined is based on open standards. Second, the results suggest that the market under study behaves as a two-sided market in that firms able to capture market share for one product enjoy benefits in terms of both market share and price for the complement. Third, the positive price benefits of securing consumer mindshare, of supporting dominant standards, and from offering a trial product are demonstrated. Last, a negative price shock is also identified in the period after a well-known, free-pricing rival has entered the market. Nonetheless, network effects continued to remain significant during the period. These findings enhance our understanding of software markets, offer new techniques for examining such markets, and suggest the wisdom of allocating resources to develop advantages in the factors studied.