Describe what the implications of the economic concepts of lock-in and switching costs really are.

Think about what the implications of the economic concepts of lock-in and switching costs really are.

Step One: Describe the characteristics needed to make an alternative operating system viable for your organization. If you’re not currently working outside the home, think of an organization you know. Using this list, research an open source (e.g., Linux) and a proprietary alternative (e.g., MS Windows 8 OR Mac OS X). Some things to think about:

What does your organization do with computers?
Who does your organization interact with? How does it interact?
What would you look for if you were planning to switch systems?

Step Two: Thinking like an economist, analyze your own organization and how its needs fit against your research of operating systems.

Describe the relevant aspects of your current computer system(s).
What are all of the costs involved in switching to another operating system? (hardware? software? what else?)?
Are there benefits to the new software/hardware for your organization? Drawbacks?

Step Three: Discuss your findings in relationship to the readings for this module. Use the economic theories and concepts to support your analysis.

Sources to Use:
Information Rules: A Strategic Guide to the Network Economy. By Carl Shapiro and Hal R. Varian Chapters 5-6. Also see the attached articles.

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