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Policy orientations and technology choices in standards wars

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  • Fu, Xiao
  • Tan, Guofu
  • Wang, Jin

Abstract

Standard-setting organizations (SSOs) exhibit a variety of policy orientations toward the conflicting interests of technology developers and adopters. In this paper, we analyze a model that incorporates the technology choices of SSOs in standards wars and royalty determinations made by the developers of essential technologies. We show that both policy orientations toward developers relative to adopters and coordinated standard setting by SSOs that issue competing standards may result in a more-than-optimal number of essential technologies. Furthermore, we examine how SSOs’ technology choices may be affected by both network effects in standard adoption and coalition formation among developers.

Suggested Citation

  • Fu, Xiao & Tan, Guofu & Wang, Jin, 2023. "Policy orientations and technology choices in standards wars," International Journal of Industrial Organization, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:indorg:v:88:y:2023:i:c:s0167718723000334
    DOI: 10.1016/j.ijindorg.2023.102952
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    References listed on IDEAS

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    More about this item

    Keywords

    Standard-essential patents; Standard-setting organizations; Standards wars; Patent royalty;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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