Modeling software markets

Humans, as social beings, interact and communicate within their networks using language to convey conceptualizations from sender to recipient. Communities share a common language, and their individual conceptualizations must significantly overlap to efficiently reference complex ideas like "the German constitution" or "medical sciences." In contrast, societies of technical devices or software agents, while designed for individual action with private states and knowledge, typically adhere to a common ontology or standardized protocol, minimizing misunderstandings. However, as these systems become more interconnected, they begin to resemble human societies, with misunderstandings becoming more detectable when reference ontologies are explicit. In both scenarios, standardizing a common language or interaction rules limits individual freedom in favor of compatibility and interaction benefits. Falk Graf von Westarp explores the software market, emphasizing its reliance on compatibility effects stemming from individual decisions.