Monopoly in Silicon Valley Software has unlimited scale economy It is argued that it also has network externalities If everyone else is using Word,that makes it convenient for me to use Word This is the Qwerty/Dvorak story "The Fable of the Keys"argues that this story is entirely mythical The authors have also argued that the observed pattern in software Is serial competition.One program dominates for a while Then a new competitor starts getting better reviews And everyone switches(Liebowitz and Margolis)Monopoly in Silicon Valley • Software has unlimited scale economy • It is argued that it also has network externalities • If everyone else is using Word, that makes it convenient for me to use Word • This is the Qwerty/Dvorak story • “The Fable of the Keys” argues that this story is entirely mythical • The authors have also argued that the observed pattern in software • Is serial competition. One program dominates for a while • Then a new competitor starts getting better reviews • And everyone switches (Liebowitz and Margolis)