Physical Sciences and Mathematics Commons^™

The Evolution Of Modular Product Architectures And The Emergence Of Platform Ecosystems, C. Jason Woodard, Eric K. Clemons

Research Collection School Of Computing and Information Systems

While a large body of research has examined the advantages and disadvantages of modularity in product design, studies of modularization have tended to focus on settings in which a product’s architecture is determined by a single designer or designers within a single organization. In this paper, we ask whether modularity can arise in a decentralized setting where high-value designs are rewarded but designers’ ability to coordinate with each other and anticipate the consequences of their actions is limited—in short, whether modularity can evolve. To answer this question, we developed an agent-based model in which boundedly rational firms combine components into …