- Classical economics [
E] distinguishes between two types of goods
- A good is substitutable if an alternative can be
found by the user that meets their needs equally well and if
the cost to switch is low or zero
-
A non-substitutable good cannot easily be switched
for another
- infrastructure products (like network switches or
operating systems) are inherently non-substitutable and
benefit from network externalities
- non-substitutable goods are more resistant to product
life-cycles because adopting them involves a large
cost
- Browsers are substitutable applications sitting on top of
non-substitutable operating systems