Companies promoting alternative standards can be locked out of the market when consumers are unwilling to bear the switching costs required to abandon the established standard and adopt the new standard.

Question

Quizplus · Accepted Answer

Consumers may be hesitant to switch to a new standard if it requires them to invest time, money, and effort to learn and adopt the new standard. This can make it difficult for companies promoting alternative standards to gain market share and compete with established standards.

Companies Promoting Alternative Standards Can Be Locked Out of the Market