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Bandwagon Effects in High Technology Industries Reprint Edition

5.0 5.0 out of 5 stars 1 rating

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Economists use the term "bandwagon effect" to describe the benefit a consumer enjoys as a result of others' using the same product or service. The history of videocassettes offers a striking example of the power of bandwagon effects. Originally there were two technical standards for videocassettes in the United States: Beta and VHS. Beta was widely regarded to have better picture quality, but VHS could record longer television programs. Eventually the selection of Beta cassettes shrank to zero, leaving consumers no choice but to get on the VHS bandwagon. The most successful bandwagon, apart from telephone service, is the Internet.

In this book, Jeffrey Rohlfs shows how the dynamics of bandwagons differ from those of conventional products and services. They are difficult to get started and often fail before getting under way. A classic example of a marketing failure is the Picturephone, introduced by the Bell System in the early 1970s. Rohlfs describes the fierce battles waged by competitors when new services are introduced, as well as cases of early agreement on a single technical standard, as with CDs and CD players. He also discusses the debate among economists and policy analysts over the advantages and disadvantages of having governments set technical standards. The case studies include fax machines, telephones, CD players, VCRs, personal computers, television, and the Internet.

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About the Author

Jeffrey H. Rohlfs is a Principal at Strategic Policy Research in Bethesda, Maryland.

Product details

  • Publisher ‏ : ‎ MIT Press; Reprint edition (January 24, 2003)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 270 pages
  • ISBN-10 ‏ : ‎ 0262681382
  • ISBN-13 ‏ : ‎ 978-0262681384
  • Item Weight ‏ : ‎ 12.8 ounces
  • Dimensions ‏ : ‎ 6 x 0.61 x 9 inches
  • Customer Reviews:
    5.0 5.0 out of 5 stars 1 rating

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  • Reviewed in the United States on April 17, 2018
    This book is really 2 books in one. First is a fairly academic review of Bandwagon Effects (aka Network Effects or Demand Side Economies of Scale... a fancy way of saying, a service becomes more valuable the more people use it). It's probably going to be too academic for most. The second is an amazing history of several technology products, and why they were successful (or not!). From the PC, to CD, to VCRs, to the Internet... it's a must for any entrepreneur wondering why Facebook or Ebay or Google or YouTube are as successful as they are.