Don Weightman on Sun, 18 Jan 1998 10:07:55 +0100 (MET) |
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<nettime> Meta text (2 of 2) on compatibility standards |
This is the second part of the reading list on the political economy of technical standards. Don Weightman > the standardization process. > >Lewis M. Branscomb and Brian Kahin, Standards processes and objectives >for the National Information Infrastructure, in Brian Kahin and Janet >Abbate, eds, Standards Policy for Information Infrastructure, >Cambridge: MIT Press, 1995. > > Branscomb and Kahin are close to the ground of government policy > processes, and their introductory chapter to the very useful > "Standards Policy for Information Infrastructure" volume is written > in the language of those processes. It quickly surveys issues > such as competing models for the standards process, the increasing > sophistication of users, the emergence of standards consortia, > intellectual property, and the several potential roles for > government in the new standards environment. > >Paul A. David, Standardization policies for network technologies: The >flux between freedom and order revisited, in Richard Hawkins, Robin >Mansell, and Jim Skea, eds, Standards, Innovation and Competitiveness: >The Politics and Economics of Standards in Natural and Technical >Environments, Edward Elgar, 1995. > > The choice between standardization and non-standardization is often > framed as a choice between the respective virtues of order and > freedom, and standards policy is consequently framed in similar > terms. David, though, argues that this analysis is ill-posed. > Instead, he urges us to view the institutional processes of > standards-setting as a dynamic response to a dynamic environment. > The consequences for policy are complicated and largely pessimistic. > >Samuel Krislov, How Nations Choose Product Standards and Standards >Change Nations, Pittsburgh: University of Pittsburgh Press, 1997. >Chapter 9: The Evolution of Standards and the Processes of >Formalization. > > Krislov's book is a comparative study of standardization policies as > part of broader national industrial and economic strategies. This > concluding chapter draws on his case studies of the United States, > European Union, Japan, and the erstwhile Soviet Europe by placing > the evolution of standards and standardization processes in that > broader institutional perspective. > >Sanford V. Berg, Public policy and corporate strategies in the AM >stereo market, in H. Landis Gabel, ed, Product Standardization and >Competitive Strategy, Amsterdam: North-Holland, 1987. > > AM radio in the United States is an example of a laissez faire > policy that leads to rapid, sharp competition between competing > standards, selecting a clear winner without stranding too many > consumers. Berg briefly recounts the particular and tries to derive > lessons for the broader question of markets for interdependent > components. > >Joseph Farrell, Standardization and intellectual property, Jurimetrics >Journal 30(1), 1989, pages 35-50. > > Farrell argues that the market dynamics of standards recommend > a limited role for intellectual property protection in general > and copyright in particular. If the economy benefits from > compatibility, then the difficult question is whether and when > intellectual property rights encourage markets to evolve toward > compatibility. > >Recommended > >Samuel Krislov, How Nations Choose Product Standards and Standards >Change Nations, Pittsburgh: University of Pittsburgh Press, 1997. >Chapter 6: Standards in the European Community. > > Krislov's study of the European Community describes standards policy > as part of a larger project of economic integration. > >W. Edward Steinmueller, The political economy of data communication >standards, in Richard Hawkins, Robin Mansell, and Jim Skea, eds, >Standards, Innovation and Competitiveness: The Politics and Economics >of Standards in Natural and Technical Environments, Edward Elgar, >1995. > > This is a brief but sophisticated analysis of the consequences > of the public good character of standards for the development > of communications protocols. The argument is particularly > useful because it turns on the role of such protocols in shaping > organization and industry structures through their effect on > transaction and coordination costs. > >David J. Gerber, Intellectual property rights, economic power, and >global technological transformation, Chicago-Kent Law Review 72, 1996, >pages 463-476. > > Gerber's article is a brief introduction to the issues that arise > as intellectual property policy responds to the globalization of > markets. > > >Week 9 / Antitrust > > The most topical policy question relating to standards is antitrust > law. A company that owns proprietary de facto standards possesses > a license to print money, particularly when those standards enable > the company to leverage its control into new markets. The law is > struggling to comprehend this phenomenon in traditional antitrust > categories, and we will consider a range of opinions. > >Mark A. Lemley, Antitrust and the Internet standardization problem, >Connecticut Law Review 28, 1996, pages 1041-1094. > > This is a lengthy but lucid explication of the theory of standards > lock-in as applied to antitrust law. Its conclusions are skeptical. > Antitrust law is held to be incapable of regulating standards-driven > industries, and standards organizations are held to be > overwhelmingly pro-competition. > >Bryce J. Jones, II, and James R. Turner, Can an operating system have >a duty to aid its competitors?, Jurimetrics 37(4), 1997, pages >355-394. > > When markets are dominated by proprietary standards, it is commonly > argued that the standard constitutes an "essential facility" in the > sense provided by American antitrust law. This argument is almost > never successful in court, but Jones and Turner lay it out > nonetheless in the case of Microsoft Windows. > >S. J. Liebowitz and Stephen E. Margolis, Should technology choice be >a concern of antitrust policy?, Harvard Journal of Law and Technology >9(2), 1996, pages 283-318. > > These scholars, as we have already seen, are highly skeptical of > the network externality theory of market failure. In this article > they apply their critiques to antitrust issues, arguing that the > foresight and sophistication of market participants is sufficient > to ensure that the best technology wins in a standards competition. > The consequence, of course, is that the government has no reason > intervene. > >Recommended > >W. Brian Arthur, Competing technologies: An overview, in Giovanni >Dosi, Christopher Freeman, Richard Nelson, Gerald Silverberg, and >Luc Soete, eds, Technical Change and Economic Theory, London: Pinter, >1988. > > Arthur's economic model of technological lock-in through positive > returns to scale suggests that monopolies can arise through > self-reinforcing market mechanisms, and that those mechanisms do > not necessarily select the optimal technology. The model abstracts > away from far too many aspects of real-world technology markets > to be evaluated in isolation, but it suggests many possible lines > of research. I have included it as a recommended reading because > is cited heavily in both the popular and legal literature. > >James J. Anton and Dennis A. Yao, Standard-setting consortia, >antitrust, and high-technology industries, Antitrust Law Journal 64, >1995, pages 247-265. > > Standardization activities, whether conducted through formal > standards organizations or through private consortia, strongly > resemble illegal marketplace collusion. Society obviously needs > standards, however, and so it is important to determine the > difference between socially necessary standardization activities > and standardization activities that mask illegal market fixing. > This article applies some of the economic theories that we've > already read to an analysis of the problem. > >Joseph Kattan, Market power in the presence of an installed base, >Antitrust Law Journal 62, 1993, pages 1-21. > > On one analysis, the dispute between the Justice Department and > Microsoft concerns what antitrust lawyers call "tying". This > article analyzes the leading tying case, in which Kodak required > the companies that bought its photocopiers to purchase parts and > supplies for those copiers exclusively from Kodak. The intuition > is that this constitutes restraint of trade to the extend that the > vendor has market power, and the question then arises of what market > power is and how one measures it. > > >Week 10 / Implementation > > We'll focus mainly on the case studies this week, so the reading > is light. I just want to remind us that proclaiming a standard does > not automatically cause the world to become uniform. This week's > readings, therefore, show what happens when standards are put into > practice. In particular, I want to point at the interaction between > the standardization of information and communications technologies, > which has been our primary focus, and the standardization of > everything else in the world. > >Stefan Timmermans and Marc Berg, Standardization in action: Achieving >local universality through medical protocols, Social Studies of >Science 27(2), 1997, pages 273-305. > > Several traditions in science and technology studies have > used ethnographic methods to argue that standards are social > constructions. That doesn't mean that they aren't real, but it > does force a sophisticated rethinking of what it means for them to > be real. This article derives from the same "actor network" school > as Callon's article in week 2. It describes some of work that is > required in executing work processes in a standardized way -- that > is, in a way that a bureaucracy can recognize as conforming to a > standard -- together with the cascading consequences of this work. > >Geoffrey Bowker, Information mythology: The world of/as information, >in Lisa Bud-Frierman, ed, Information Acumen: The Understanding and >Use of Knowledge in Modern Business, London: Routledge, 1994. > > Technical people are accustomed to defining the behavior of a > computer solely in terms of its internal workings. As Bowker > points out, however, most computers process information that > derives from diverse places and times in the world. Those numbers > will only be useful if they are commensurable, and they will only > be commensurable if the world itself is standardized, together with > the practices by which the numbers are defined and captured. Simple > though it may be, this observation has profound consequences for our > understanding of computers and computation. > >Mark Casson, Economic perspectives on business information, in Lisa >Bud-Frierman, ed, Information Acumen: The Understanding and Use of >Knowledge in Modern Business, London: Routledge, 1994. > > Casson's chapter is a whirlwind introduction to information > economics. Markets are frequently claimed to have near-miraculous > properties, but underneath those claims are numerous assumptions, > including the assumption that information is plentiful and free. > But information is a commodity that gets produced and distributed > like any other, and it will only get produced in large quantities > if somebody pays for it. One consequence of this seeming paradox, > Casson argues, is that increases in the efficiency of information > production will cause reality to approximate the wonderland of > economics. Put this argument together with Bowker's, and it > becomes possible to comprehend the profound embedding of computers > in evolving institutional arrangements. > > >Reading list > >The following is a complete list of the works that I consulted in >preparing the syllabus. If you are aware of other relevant materials, >I would greatly appreciate a citation that I can include in future >editions of the course. > >Frederick M. Abbott, Public policy and global technological >integration: An introduction, Chicago-Kent Law Review 72, 1996, pages >345-356. > >Lloyd C. Anderson, United States v. Microsoft, antitrust consent >decrees, and the need for a proper scope of judicial review, Antitrust >Law Journal 65, 1996, pages 1-40. > >Cristiano Antonelli, The dynamics of technological interrelatedness: >The case of information and communication technologies, in Dominique >Foray and Christopher Freeman, eds, Technology and the Wealth of >Nations: The Dynamics of Constructed Advantage, London: Pinter, 1993. > >W. Brian Arthur, Competing technologies, increasing returns, and >lock-in by historical events, The Economic Journal 99, 1989, pages >116-131. > >W. Brian Arthur, Increasing returns and the new world of business, >Harvard Business Review 74(4), 1996, pages 100-109. > >William P. Barnett, The organizational ecology of a technological >system, Administrative Science Quarterly 35(1), 1990, pages 31-60. > >George Basalla, The Evolution of Technology, Cambridge: Cambridge >University Press, 1988. > >Stanley M. Besen and Garth Saloner, The economics of >telecommunications standards, in Robert W. Crandall and Kenneth >Flamm, eds, Changing the Rules: Technological Change, International >Competition, and Regulation in Communications, Washington, DC: >Brookings, 1989. > >Stanley M. Besen and Joseph Farrell, The role of the ITU in >standardization: Pre-eminence, impotence or rubber stamp?, >Telecommunications Policy 15(4), 1991, pages 311-321. > >Marjory S. Blumenthal, Realizing the information future: Technology, >economics, and the Open Data Network, in Gerald W. Brock, ed, Toward a >Competitive Telecommunication Industry: Selected Papers from the 1994 >Telecommunications Policy Research Conference, Mahwah, NJ: Erlbaum, >1995. > >Severin Borenstein, Repeat-buyer programs in network industries, in >Werner Sichel and Donald L. Alexander, eds, Networks, Infrastructure, >and the New Task for Regulation, Ann Arbor: University of Michigan >Press, 1996. > >Stephen A. Brown, Revolution at the Checkout Counter: The Explosion of >the Bar Code, Harvard University Press, 1997. > >Michel Callon, The dynamics of techno-economic networks, in Rod >Coombs, Paolo Saviotti, and Vivien Walsh, eds, Technological Change >and Company Strategies, London: Academic Press, 1992. > >Michel Callon, Variety and irreversibility in networks of technique >conception and adoption, in Dominique Foray and Christopher Freeman, >eds, Technology and the Wealth of Nations: The Dynamics of Constructed >Advantage, London: Pinter, 1993. > >Carl F. Cargill, Information Technology Standards: Theory, Process, >and Organizations, Digital Press, 1989. > >Carl Cargill, Justifying the need for a standards program, in Robert >B. Toth, ed, Standards Management: A Handbook for Profits, New York: >American National Standards Institute, 1990. > >Carl F. Cargill, A five-segment model of standardization, in >Brian Kahin and Janet Abbate, eds, Standards Policy for Information >Infrastructure, Cambridge: MIT Press, 1995. > >Jay Pil Choi, Irreversible choice of uncertain technologies with >network externalities, RAND Journal of Economics 25(3), 1994, pages >382-401. > >Jeffrey Church and Neil Gandal, Network effects, software provision, >and standardization, Journal of Industrial Economics 40(1), 1992, >pages 85-103. > >Fabrizio Coricelli and Giovanni Dosi, Coordination and order in >economic change and the interpretative power of economic theory, in >Giovanni Dosi, Christopher Freeman, Richard Nelson, Gerald Silverberg, >and Luc Soete, eds, Technical Change and Economic Theory, London: >Pinter, 1988. > >Richard Cornes and Todd Sandler, The Theory of Externalities, Public >Goods, and Club Goods, Cambridge: Cambridge University Press, 1996. > >Robin Cowan, High technology and the economics of standardization, >in Meinholf Dierkes and Ute Hoffman, eds, New Technology at the Outset: >Social Forces in the Shaping of Technological Innovations, Frankfurt: >Campus Verlag, 1992. > >Robert W. Crandall and Kenneth Flamm, eds, Changing the Rules: >Technological Change, International Competition, and Regulation in >Communications, Washington, DC: Brookings, 1989. > >Rhonda J. Crane, The Politics of International Standards: France and >the Color TV War, Norwood, NJ: Ablex, 1979. > >D. Crocker, Making standards the IETF way, StandardView 1(1), 1993, >pages 48-54. > >Terry Curtis and Hajime Oniki, Economic and political factors in >telecommunication standards setting in the US and Japan: The case of >BISDN, in Gerard Pogorel, ed, Global Telecommunications Strategies and >Technological Changes, Amsterdam: North-Holland, 1994. > >Paul A. David, Clio and the economics of QWERTY, American Economic >Review 72(2), 1985, pages 332-337. > >Paul A. David, Path-dependence and predictability in dynamic systems >with local network externalities: A paradigm for historical economics, >in Dominique Foray and Christopher Freeman, eds, Technology and the >Wealth of Nations: The Dynamics of Constructed Advantage, London: >Pinter, 1993. > >Paul A. David and Dominique Foray, Percolation structures, Markov >random fields and the economics of EDI standards diffusion, in Gerard >Pogorel, ed, Global Telecommunications Strategies and Technological >Changes, Amsterdam: North-Holland, 1994. > >Paul A. David and Geoffrey S. Rothwell, Standardization, diversity, >and learning: Strategies for the coevolution of technology and >industrial capacity, Publication No. 402, Center for Economic Policy >Research, Stanford University, 1994. > >William J. Drake, Europe in the new global standardization >environment, in Charles Steinfield, Laurence Caby, and Johannes Bauer, >eds, Telecommunications in Europe: Changing Policies, Services and >Technologies, Newbury Park, CA: Sage, 1992. > >Nicholas Economides, A monopolist's incentive to invite competitors >to enter in telecommunications services, in Gerard Pogorel, ed, Global >Telecommunications Strategies and Technological Changes, Amsterdam: >North-Holland, 1994. > >Nicholas Economides and Charles Himmelberg, Critical mass and network >evolution in telecommunications, in Gerald W. Brock, ed, Toward a >Competitive Telecommunication Industry: Selected Papers from the 1994 >Telecommunications Policy Research Conference, Mahwah, NJ: Erlbaum, >1995. > >Joseph Farrell, Arguments for weaker intellectual property protection >in network industries, StandardView 3(2), 1995, pages 46-49. > >Joseph Farrell, Harnesses and muzzles: Greed as engine and threat in >the standards process, StandardView 4(1), 1996, pages 29-31. > >Joseph Farrell and Garth Saloner, Standardization, compatibility, and >innovation, RAND Journal of Economics 16(1), 1985, pages 70-83. > >Joseph Farrell and Garth Saloner, Competition, compatibility and >standards: The economics of horses, penguins and lemmings, in >H. Landis Gabel, ed, Product Standardization and Competitive Strategy, >Amsterdam: North-Holland, 1987. > >Joseph Farrell and Garth Saloner, Converters, compatibility, and the >control of interfaces, Journal of Industrial Economics 40(1), 1992, >pages 9-35. > >Franklin M. Fisher, John J. McGowan, and Joen E. Greenwood, Folded, >Spindled, and Mutilated: Economic Analysis and U.S. v. IBM, Cambridge: >MIT Press, 1983. > >Dominique Foray, Coalitions and committees: How users get involved >in information technology (IT) standards, in Richard Hawkins, Robin >Mansell, and Jim Skea, eds, Standards, Innovation and Competitiveness: >The Politics and Economics of Standards in Natural and Technical >Environments, Edward Elgar, 1995. > >H. Landis Gabel, ed, Product Standardization and Competitive Strategy, >Amsterdam: North-Holland, 1987. > >Neil Gandal, Hedonic price indexes for spreadsheets and an empirical >test for network externalities, RAND Journal of Economics 25(3), 1994, >pages 160-170. > >D. Linda Garcia, Standard setting in the United States: Public and >private sector roles, Journal of the American Society for Information >Science 43(8), 1992, pages 531-537. > >Richard J. Gilbert, Symposium on compatibility: Incentives and market >structure, Journal of Industrial Economics 40(1), 1992, pages 1-8. > >George Gilbert, The battle for the enterprise backbone, Beyond the >Enterprise 1(1), 1997. > >E. M. Gray and Dennis Bodson, Preserving due process in standards >work, StandardView 3(4), 1995, pages 130-139. > >Shane M. Greenstein, Invisible hands and visible advisors: An economic >analysis of standardization, Journal of the American Society for >Information Science 43(8), 1992, pages 538-549. > >Warren S. Grimes, Antitrust tie-in analysis after Kodak: Understanding >the role of market imperfections, Antitrust Law Journal 62, pages >264-325. > >Peter Grindley and Saadet Toker, Establishing standards for Telepoint: >Problems of fragmentation and commitment, in Gerard Pogorel, ed, >Global Telecommunications Strategies and Technological Changes, >Amsterdam: North-Holland, 1994. > >Martyne M. Hallgren and Alan K. McAdams, The economic efficiency of >Internet public goods, in Lee W. McKnight and Joseph P. Bailey, eds, >Internet Economics, Cambridge: MIT Press, 1997. > >Jerry A. Hausman, Proliferation of networks in telecommunications: >Technological and economic considerations, in Werner Sichel and Donald >L. Alexander, eds, Networks, Infrastructure, and the New Task for >Regulation, Ann Arbor: University of Michigan Press, 1996. > >Richard Hawkins, Robin Mansell, and Jim Skea, eds, Standards, >Innovation and Competitiveness: The Politics and Economics of >Standards in Natural and Technical Environments, Edward Elgar, 1995. > >Richard W. Hawkins, Standards-making as technological diplomacy: >Assessing objectives and methodologies in standards institutions, >in Richard Hawkins, Robin Mansell, and Jim Skea, eds, Standards, >Innovation and Competitiveness: The Politics and Economics of >Standards in Natural and Technical Environments, Edward Elgar, 1995. > >Michel Hergert, Technical standards and competition in the >microcomputer industry, in H. Landis Gabel, ed, Product >Standardization and Competitive Strategy, Amsterdam: North-Holland, >1987. > >Linda F. Hogle, Standardization across non-standard domains: The case >of organ procurement, Science, Technology, and Human Values 20(4), >1995, pages 482-500. > >Kai Jacobs, Rob Procter, and Robin Williams, Users and >standardization: Worlds apart? The example of electronic mail, >StandardView 4(4), 1996, pages 183-191. > >Eric Jaeger, Review of Information Technology Standards: Quest for the >Common Byte by Martin Libicki, StandardView 3(4), 1995, pages 159-161. > >Marcel Kahan and Michael Klausner, Path dependence in corporate >contracting: Increasing returns, herd behavior and cognitive biases, >Washington University Law Quarterly 74, 1996, pages 347-366. > >Brian Kahin, Information technology and information infrastructure, >in Lewis M. Branscomb, ed, Empowering Technology: Implementing a US >Strategy, Cambridge: MIT Press, 1993. > >Brian Kahin and James H. Keller, eds, Coordinating the Internet, >Cambridge: MIT Press, 1997. > >Brian Kahin and Janet Abbate, eds, Standards Policy for Information >Infrastructure, Cambridge: MIT Press, 1995. > >Michael L. Katz and Carl Shapiro, Network externalities, competition, >and compatibility, American Economic Review 75(3), 1985, pages >424-440. > >Michael L. 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Warshaw, The evolution of technical standards and trade in >a changing world economy, in John R. McIntyre, ed, Japan's Technical >Standards: Implications for Global Trade and Competitiveness, >Westport, CT: Quorum, 1997. > >Martin B. H. Weiss, The standards development process: A view from >political theory, StandardView 1(2), 1993, pages 35-41. > >Martin B. H. Weiss and Ronald T. Toyofuku, Free-ridership in the >standards-setting process: The case of 10BaseT, StandardView 4(4), >1996, pages 205-212. > >Dennis A. Yao, Beyond the reach of the invisible hand: Impediments >to economic activity, market failures, and profitability, Strategic >Management Journal 9, 1988, pages 59-70. > >end > > --- # distributed via nettime-l : no commercial use without permission # <nettime> is a closed moderated mailinglist for net criticism, # collaborative text filtering and cultural politics of the nets # more info: majordomo@icf.de and "info nettime" in the msg body # URL: http://www.desk.nl/~nettime/ contact: nettime-owner@icf.de