ABSTRACT
The technology providers supply information and communications technology (ICT) products such as computer hardware, connection equipment, and software. Network operators acquire these ICT products to create physical data and voice communication networks. This chapter discusses a simple model that highlights the compatibility choice in a context with multiple markets, multimarket firms, and cooperation. Compatibility is a technical feature of the relationship between two or more components in a system. The common feature of compatible products is that they enable their users to share resources. There are various ways to achieve compatibility. One way is to formulate a standard, a set of specifications, such that products that satisfy these specifications are compatible. Another is to build an adapter that couples different products to integrate their networks. Firms can follow several paths in establishing a standard. Each contender may develop the technology, and then introduce a product in the market.
