Social welfare model of standard competition

In this paper, a two-standard mathematical model of the competition between telecommunications standards is established to analyze the relationship of price, technology level and consumer´s preference. The result of computer simulation of the model shows the trends of different standards of the profit level, total network size, and total social welfare, on the ground of the ever-increasing technology level of domestic standard. The conclusion is that making the two-standard technical levels closer will improve the level of social welfare and the total network size.