Winning the Hardware-Software Game

Using Game Theory to Optimize the Pace of New Technology Adoption

Innovators of new technology systems requiring users to combine both hardware and software components often face delays in adoption of their new systems.  Users will not buy the hardware until enough software or content is available, while at the same time software providers will not provide content until enough users have adopted the new system.  This book examines the dynamics of this adoption process and provides methods for optimizing the pace of adoption of new technology systems.     Read more...

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The simulation model I created to analyze the Hardware-Software Game can be used to provide estimates for specific market scenarios.  In particular, the model can be used to estimate:
  • User demand for new systems hardware for different combinations of the price of hardware, the size of the installed base of new system users, and the amount of content available for the new system;
  • User demand for new systems software for different combinations of the price of software, the size of the installed base of new system users, and the amount of content available for the new system;
  • HW’s optimal response (price of hardware) to SW’s provision of content for the new system;
  • SW’s optimal response (provision of content for the new system) to HW’s installed base of new system users.