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Bandwagon Effects in High-Technology Industries cover
  • ISBN: 9780262182171
  • ISBN10: 0262182173

Bandwagon Effects in High-Technology Industries

by Rohlfs, Jeffrey H.

  • List Price: $34.95
  • Binding: Hardcover
  • Publisher: MIT Press
  • Publish date: 01/01/2005
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Economists use the term "bandwagon effect" to describe the benefit a consumer enjoys as a result of others using the same product or service. The history of videocassettes offers a striking example of the power of bandwagon effects. Originally there were two technical standards for videocassettes in the United States: Beta and VHS. Beta was widely regarded to have better picture quality, but VHS could record longer television programs. Eventually the selection of Beta cassettes shrank to zero, leaving consumers no choice but to get on the VHS bandwagon. The most successful bandwagon, apart from telephone service, is the Internet.
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