Co-opetition in Standard-Setting: The Case of the Compact Disc

Tobias Kretschmer and Katrin Muehlfeld ()
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Katrin Muehlfeld: London School of Economics

No 04-14, Working Papers from NET Institute

Abstract: The success of the CD has (partly) been attributed to the ability of Sony, Philips and Matsushita to cooperate in the run-up to the DAD conference in 1981, where the technological standard was set. We model the situation leading up to the conference in a simple game with technological progress and the possibility of prelaunching a technology. We identify players' tradeo s between prelaunching (which ends technological progress) and continued development (which involves the risk of being pre-empted). Contrasting outcomes with complete and incomplete information, we nd that there appeared to be considerable uncertainty about rivals' technological progress.

Pages: 32 pages
Date: 2004-10, Revised 2004-10
New Economics Papers: this item is included in nep-ict and nep-ino
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Citations: View citations in EconPapers (3)

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