Abstract

http://ssrn.com/abstract=278762
 
 

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Economic Perspectives on Software Design: Pc Operating Systems and Platforms


Steven J. Davis


University of Chicago; National Bureau of Economic Research (NBER)

Kevin M. Murphy


University of Chicago; National Bureau of Economic Research (NBER)

Jack MacCrisken


Chicago Partners, LLC

August 2001

NBER Working Paper No. w8411

Abstract:     
Improvements in the software that provides hardware management, user interface and platform functions have played a central role in the growth and transformation of the personal computer (PC) industry. Several forces shape the design of these 'operating system' products and propel their evolution over time, including: A. The need to efficiently manage the interacting components of PC systems so as to keep pace with rapid advances in computer technologies the development of applications software. B. The need to maintain compatibility with existing applications while preserving the flexibility to incorporate additional functions that support new applications. C. The desire to economize on customer support costs and assign clear responsibility for making the interacting components of the PC work together. D. The desire to bundle multiple software features into a single package so as to more effectively meet the demand for complementary applications or reduce the diversity in product valuations among consumers. We analyze these forces and the factors that determine whether and when new features and functions are included in commercial operating system products. We also explain how this integration and bundling spurs growth in the PC industry and fosters innovation.

Number of Pages in PDF File: 88

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Date posted: August 6, 2001  

Suggested Citation

Davis, Steven J. and Murphy, Kevin M. and MacCrisken, Jack, Economic Perspectives on Software Design: Pc Operating Systems and Platforms (August 2001). NBER Working Paper No. w8411. Available at SSRN: http://ssrn.com/abstract=278762

Contact Information

Steven J. Davis (Contact Author)
University of Chicago ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7312 (Phone)
773-702-0458 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Kevin M. Murphy
University of Chicago ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7280 (Phone)
773-702-2699 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Jack MacCrisken
Chicago Partners, LLC ( email )
140 S. Dearborn Street
Suite 1500
Chicago, IL 60603
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Citations:  6
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