The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware

David Dranove and Neil Gandal
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David Dranove: Northwestern University
Neil Gandal: Tel Aviv University, UC-Berkeley, & CEPR

Law and Economics from EconWPA

Abstract: In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing growth. We find that there are network effects in the DVD market and that the preannouncement of DIVX slowed down the adoption of DVD technology. This suggests that strategic preannouncements can indeed affect the outcome of a standards competition.

JEL-codes: K21 L82 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-law and nep-net
Date: 2001-01-05
Note: 32 pages, Acrobat .pdf

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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwple:0012001

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