Title
Co-opetition and prelaunch in standard-setting for developing technologies Co-opetition and prelaunch in standard-setting for developing technologies
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Munich :Centre for Economic Performance, [*]
Subject
Economics
Source (series)
CEP discussion paper ; 742
ISBN
0-7530-2039-4
Carrier
E
Target language
English (eng)
Abstract
Firms faced with the decision of whether to standardize or not prior to introducing a newnetwork technology face a tradeoff: Compatibility improves the technology's chances ofconsumer acceptance, but it also means having to share the resulting profits with othersponsors of the standard. In this paper, we show that even prior to market introduction of anew technology, the timing of decisions is important and that firms have to weigh up thecooperative and competitive elements of pre-market choices. We also show that the option toprecommit to a technology before it is fully developed (as has been the case with theCompact Disc) can be profitable for network technologies
E-info
http://cep.lse.ac.uk/pubs/download/dp0742.pdf