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Interop: The Promise and Perils of Highly Interconnected Systems by Urs Gasser, John Palfrey

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CHAPTER FIVE
Competition and Uniformity
Competition is a good thing in markets for information technologies because it often leads to innovation and greater diversity of services to customers. These positive outcomes occur when there is a level playing field and low barriers to market entry. A major argument in favor of interoperability is that it tends to promote competition by making it easier for new players to participate, especially in information-related businesses. Over nearly a decade of studying interop, we have analyzed many examples in which interoperability has played an important role in leading to competition in the marketplace. For instance, in social media, a broadly interoperable ecosystem of technologies has led to an explosion ...

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