This paper studies the role of firm heterogeneity and information spillovers in the sourcing decision to provide web services. To this end, we develop a theoretical model that relates these factors to firms' decisions to outsource or use in-house resources (insource). Based on this theoretical...

We seek to investigate to what extent network effects and switching costs affect the decision to adopt Linux or Windows as the operating system for computer servers. To this end, we use detailed survey data of over 100,000 establishments in the United States. To account for unobserved...

This paper attempts to distinguish state dependence (or lock-in) from unobserved preferences in the decision to adopt Linux or Windows as the operating system for computer servers. To this end, we use detailed survey data of over 100,000 establishments in the United States. Without accounting...