Vaporware

Type/no A66/05
Author Jay Pil Choi, Eirik Gaard Kristiansen and Jae Nahm
It is a widely adopted practice for firms to announce new products well in advance of actual market availability, especially in the computer industry. This practice of pre-announcement often has been derisively referred to as “vaporware” since many of the products either never reach the market or are significantly delayed. We provide a simple model of vaporware and discuss its implications for social welfare and anti-trust policy.
Language Written in english