Price/performance patterns of U. S. computer systems

  • Authors:
  • E. G. Cale;L. L. Gremillion;J. L. McKenney

  • Affiliations:
  • Harvard Univ., Boston, MA;Harvard Univ., Boston, MA;Harvard Univ., Boston, MA

  • Venue:
  • Communications of the ACM
  • Year:
  • 1979

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Abstract

Econometric models of the U.S. computer market have been developed to study the relationships between system price and hardware performance. Single measures of price/performance such as “Grosch's Law” are shown to be so oversimplified as to be meaningless. Multiple-regression models predicting system cost as a function of several hardware characteristics do, however, reveal a market dichotomy. On one hand there exists a stable, price predictable market for larger, general purpose computer systems. The other market is the developing one for small business computer systems, a market which is relatively unstable with low price predictability.