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Lock In and Vaporware: What’s the Connection?. Erica Gierke Advisors: Chris Fernandes and Stephen Schmidt (Eco). Agenda. Economic problems of lock in and vaporware Experimental Structure Results Conclusion. What is Lock In?. Why Does It Matter?.

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Lock In and Vaporware: What’s the Connection?


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    Presentation Transcript
    1. Lock In and Vaporware: What’s the Connection? Erica Gierke Advisors: Chris Fernandes and Stephen Schmidt (Eco)

    2. Agenda • Economic problems of lock in and vaporware • Experimental Structure • Results • Conclusion

    3. What is Lock In?

    4. Why Does It Matter? • Adopting standards makes improvement hard • Standards are good, static standards are bad

    5. Contributing Factors Compatibility Network Externalities Example: How useful is an instant messenger that no one else uses?

    6. Preannouncements • Many technology products are preannounced • Give insight into future products available • Sometimes truthful, sometimes not

    7. Vaporware • A deliberate false product announcement • Can influence other producers and consumers • Problem- false announcements can delay technology even more

    8. How does vaporware hurt? Vaporware announcements prolong lock in Hypothesis:

    9. Producers Consumers The Experimental Program Database Backend

    10. The Experiment B2 A2 $$ A1 $

    11. Producer Start Production Page Update Database/ Production Feedback Vaporware Announcement Producer Feedback Producer Wait Submit Announcement/ Announcement Feedback The Producer’s Interface

    12. Consumer Start Consumer Wait Consumer Purchase Consumer Update/ Purchase Feedback Consumer Feedback The Consumer’s Interface

    13. Data • Collected data over 4 sessions • Two 4 round and two 8 round sessions • Most interesting data from 8 round sessions

    14. Data Best Progress For Producers Inefficient Progression A B C D E F G H I

    15. Session 3- Producers A B C D E F G H I

    16. Session 4- Producers A B C D E F G H I

    17. Vaporware Announcements • Session three, one announcement • Session four, one producer announced most rounds

    18. Session 3- Announcements A B C D E F G H I

    19. Session 4- Announcements A B C D E F G H I

    20. Conclusion • Vaporware impedes progress • Sessions with less announcements progressed further

    21. Questions?