Publication
Title
The dynamics of pre-market standardization
Author
Abstract
This paper studies an under-explored phenomenon: standardization arising during the technology development stage from the interplay of incentives to compete and cooperate. We identify circumstances in which a firm will prelaunch its technology (i.e., publish detailed technological specifications) and the rival abandons its own technology to support a common standard in a two-stage two-player game with network effects and licensing and a fixed deadline for technological development. We find that failure to standardize predominantly occurs for technologies with very weak or very strong network effects, and for firms with similar technological capabilities. The outcome can depend on what would be perceived by market participants as a simultaneous prelaunch: a prelaunch on the same day, during the same week, or month, and so on, depending on how time is discretized.
Language
English
Source (journal)
Information economics and policy. - Amsterdam
Publication
Amsterdam : 2012
ISSN
0167-6245
Volume/pages
24:2(2012), p. 105-119
ISI
000305199200002
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
External links
Web of Science
Record
Identification
Creation 27.09.2012
Last edited 21.06.2017