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  4. June 2000
  5. Standardization in Decentralized Economies

蝌蚪网 Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Standardization in Decentralized Economies

  • Emmanuelle Auriol
  • Michel Benaim
蝌蚪网 Review
vol. 90, no. 3, June 2000
(pp. 550–570)
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Abstract

This paper presents a dynamic model, inspired by evolutionary game theory, of how standards and norms emerge in decentralized economies. It shows that standardization outcomes depend on adopters' attitudes to problems caused by incompatibility. If individuals display aversion to incompatibility, standardization never fails to happen eventually, but societies sometimes end up picking inferior standards. In this case, official action can be useful to quickly achieve sensible standardization. On the other hand, when individuals display tolerance or neutrality to incompatibility, there is neither path-dependency nor a lock-in problem, and regulation seems a poor alternative to laissez-faire.

Citation

Auriol, Emmanuelle, and Michel Benaim. 2000. "Standardization in Decentralized Economies." 蝌蚪网 Review 90 (3): 550–570. DOI: 10.1257/aer.90.3.550

JEL Classification

  • L15 Information and Product Quality; Standardization and Compatibility