While reading Kung's article on the internet and its impact I was struck by a few different ideas. The first was the diffusion of innovations and its role in economics because of the concepts of network effects and lock in and switching costs. I think it's easy to remember the battle between HD DVD and Blu-ray. Why do people seem to have one type of smart phone and hesitate to change operating systems? Cable providers? A lot of it has to do with the cost. Once you can get some people to buy-in to an idea or product then you can start to take advantage of the network effects and thereby speed up the diffusion of innovations. So what is it that makes one product more successful than another and how to I get call shotgun in that bandwagon?
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