Introduction to the non-cooperative approach to coalition formation: the case of the Blu-Ray/HD-DVD standards' war

Nabyla Daidj (), Cristina Grazia and Abdelhakim Hammoudi ()
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Nabyla Daidj: IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], TEM Research - TEM - Télécom Ecole de Management
Cristina Grazia: UNIBO - Alma Mater Studiorum Università di Bologna = University of Bologna
Abdelhakim Hammoudi: ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique

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Abstract: The concepts of the theory of endogenous coalition formation have not been utilized much to analyze issues in the field of applied economics. In this paper, we show how these concepts make a relevant and innovative contribution to these issues. We first illustrate the fundamentals of this theory and we present the concept of internal and external cartel stability. We provide an illustration of this concept through a basic example of an oligopoly in a cartelization situation. Then, we show the relevance of these concepts by analyzing the battle between the high-definition DVD-player standards: Sony's Blu-Ray and NEC/Toshiba's HD-DVD.

Keywords: HD-DVD; Game theory; Coalitions; Non-cooperative games; Standard's war; Blu-Ray (search for similar items in EconPapers)
Date: 2010-10
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Published in Journal of Media Economics, 2010, 23 (4), pp.192 - 215. ⟨10.1080/08997764.2010.527206⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02446912

DOI: 10.1080/08997764.2010.527206

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