Vendor lock-inIn economics, vendor lock-in, also known as proprietary lock-in or customer lock-in, makes a customer dependent on a vendor for products, unable to use another vendor without substantial switching costs. The use of open standards and alternative options makes systems tolerant of change, so that decisions can be postponed until more information is available or unforeseen events are addressed. Vendor lock-in does the opposite: it makes it difficult to move from one solution to another.
Path dependencePath dependence is a concept in the social sciences, referring to processes where past events or decisions constrain later events or decisions. It can be used to refer to outcomes at a single point in time or to long-run equilibria of a process. Path dependence has been used to describe institutions, technical standards, patterns of economic or social development, organizational behavior, and more. In common usage, the phrase can imply two types of claims.
Embrace, extend, and extinguish"Embrace, extend, and extinguish" (EEE), also known as "embrace, extend, and exterminate", is a phrase that the U.S. Department of Justice found was used internally by Microsoft to describe its strategy for entering product categories involving widely used standards, extending those standards with proprietary capabilities, and then using those differences in order to strongly disadvantage its competitors.
OligopolyAn oligopoly () is a market in which control over an industry lies in the hands of a few large sellers who own a dominant share of the market. Oligopolistic markets have homogenous products, few market participants, and inelastic demand for the products in those industries. As a result of their significant market power, firms in oligopolistic markets can influence prices through manipulating the supply function. Firms in an oligopoly are also mutually interdependent, as any action by one firm is expected to affect other firms in the market and evoke a reaction or consequential action.
Perfect competitionIn economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price. This equilibrium would be a Pareto optimum.
Barriers to entryIn theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur. Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices and are therefore most important when discussing antitrust policy.
InteroperabilityInteroperability is a characteristic of a product or system to work with other products or systems. While the term was initially defined for information technology or systems engineering services to allow for information exchange, a broader definition takes into account social, political, and organizational factors that impact system-to-system performance. Types of interoperability include syntactic interoperability, where two systems can communicate with each other, and cross-domain interoperability, where multiple organizations work together and exchange information.
Market failureIn neoclassical economics, market failure is a situation in which the allocation of goods and services by a free market is not Pareto efficient, often leading to a net loss of economic value. Market failures can be viewed as scenarios where individuals' pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point of view. The first known use of the term by economists was in 1958, but the concept has been traced back to the Victorian philosopher Henry Sidgwick.
Open standardAn open standard is a standard that is openly accessible and usable by anyone. It is also a common prerequisite that open standards use an open license that provides for extensibility. Typically, anybody can participate in their development due to their inherently open nature. There is no single definition, and interpretations vary with usage. The terms open and standard have a wide range of meanings associated with their usage.
VideotelephonyVideotelephony (also known as videoconferencing, video teleconferencing, or simply video call) is the two-way or multipoint reception and transmission of audio and video signals by people in different locations for real-time communication. A videophone is a telephone with a video camera and video display, capable of simultaneous video and audio communication. Videoconferencing implies the use of this technology for a group or organizational meeting rather than for individuals, in a videoconference.
