By E. G. Cale, L. L. Gremillion, J. L. McKenney
Communications of the ACM,
April 1979,
Vol. 22 No. 4, Pages 225-233
10.1145/359094.359097
Comments
Econometric models of the U.S. computer market have been developed to study the relationships between system price and hardware performance. Single measures of price/performance such as “Grosch's Law” are shown to be so oversimplified as to be meaningless. Multiple-regression models predicting system cost as a function of several hardware characteristics do, however, reveal a market dichotomy. On one hand there exists a stable, price predictable market for larger, general purpose computer systems. The other market is the developing one for small business computer systems, a market which is relatively unstable with low price predictability.
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