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Physical Sciences and Mathematics Commons

Open Access. Powered by Scholars. Published by Universities.®

Singapore Management University

2011

Technology and Innovation

Economies of scale

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Full-Text Articles in Physical Sciences and Mathematics

From Primordial Soup To Platform-Based Competition: Exploring The Emergence Of Products, Systems, And Platforms, C. Jason Woodard, Eric K. Clemons Dec 2011

From Primordial Soup To Platform-Based Competition: Exploring The Emergence Of Products, Systems, And Platforms, C. Jason Woodard, Eric K. Clemons

Research Collection School Of Computing and Information Systems

We use an agent-based NK model to explore the conditions under which standard platforms emerge among competing products. Our findings were inconclusive. We find that the usual Darwinian conditions needed for the emergence of complexity are sufficient to yield a limited reliance upon platforms with a core of common components, simply because evolution causes the population to converge on a set of products that contain combinations that "work well," yielding what we call "coincidental platform emergence." Economies of scale yield more use of common components, or "production platform emergence." Positive participation externalities initially induce the highest degree of platform emergence …