The DVD Versus DIVX Standard War: Empirical Evidence of Network Effects and Preannouncement Effects

Neil Gandal and David Dranove

No 3634, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this Paper, we empirically test for network effects and preannouncement effects 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. The data is generally consistent with the hypothesis that the preannouncement of DIVX temporarily slowed down the adoption of DVD technology.

Keywords: Product preannouncements; Standards; Network effects (search for similar items in EconPapers)
JEL-codes: K21 L82 (search for similar items in EconPapers)
Date: 2002-11
New Economics Papers: this item is included in nep-ind, nep-law, nep-mic and nep-net
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