Competition and industrial policies in a ‘history friendly’model of the evolution of the computer industry (original) (raw)

This research investigates the challenges of industrial policy in the context of industries characterized by dynamic increasing returns, using a 'history-friendly model' focused on the evolution of the computer industry. It highlights two distinct forms of increasing returns: one related to firms' advancements in product and process technologies, and the other concerning customer purchasing behavior, particularly in different eras such as mainframe versus personal computers. The study also analyzes the implications of government intervention and antitrust measures on market dynamics and firm competitiveness.