In this thesis, I analyze hardware industry equilibrium when hardware goods produced by different producers generate utility only when consumed with softwares. I assume the presence of two hardware technologies, each composed a set of differentiated softwares. I focus on the role played by size of the cost advantage of one hardware firm which determine the size of network effect in the various industry structure and types.
I show that standardization will be the equilibrium outcome when cost difference is large, also the hardware technology superior in cost has a larger market share.