Wintel: Cooperation and Conflict

Ramon Casadesus-Masanell () and David B. Yoffie ()
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Ramon Casadesus-Masanell: Harvard Business School, Morgan Hall 233, Soldiers Field Road, Boston, Massachusetts 02163
David B. Yoffie: Harvard Business School, Morgan Hall 215, Soldiers Field Road, Boston, Massachusetts 02163

Management Science, 2007, vol. 53, issue 4, 584-598

Abstract: We study competitive interactions between Intel and Microsoft, two producers of complementary products. In a system of complements, like the PC, the value of the final product depends on how well the different components work together. This, in turn, depends on the firms' investment in complementary R& D. We ask whether Intel and Microsoft will want to cooperate and make the final product as valuable as possible. Contrary to the popular view that two tight complements will generally have well aligned incentives, we demonstrate that natural conflicts emerge over pricing, the timing of new product releases, and who captures the greatest value at different phases of product generations.

Keywords: complements; business models; competitive dynamics (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:53:y:2007:i:4:p:584-598

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