“…then came Cisco, and the rest is history”: a ‘history friendly’ model of the Local Area Networking industry Date:2015-02By:R. Fontana L. ZiruliaURL:http://d.repec.org/n?u=RePEc:bol:bodewp:wp993&r=his We study the role that switching costs, compatibility, and mergers and acquisitions, play in influencing the evolution of a multi-market industry. By looking at the case of the Local Area Networking industry, we propose a ‘history friendly model’ to replicate its evolution during the 1990s. Our model explains how a firm can start from a dominant position in one of the existing markets and exploit switching costs and compatibility to enter a new market when it opens. Mergers and acquisitions also play an important role as the new market is pioneered by a new start-up, which is soon acquired by the dominant incumbent. As a result of the acquisition, the acquiring firm becomes leader also in the new market. JEL:O30 L10 L63 -- ================== Twitter @BatizLazo Technological Innovation in Retail Finance: International Historical Perspectives Edited by Bernardo Batiz-Lazo, J. Carles Maixé-Altés, Paul Thomes http://www.taylorandfrancis.com/books/details/9780415880671 Home page: http://www.bangor.ac.uk/business/staff/bernardo_batiz-lazo.en.php Working papers: http://ideas.repec.org/e/pba14.html