The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware
AbstractIn 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.
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Bibliographic InfoPaper provided by Department of Economics, Institute for Business and Economic Research, UC Berkeley in its series Department of Economics, Working Paper Series with number qt0979867q.
Date of creation: 02 Nov 2000
Date of revision:
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network effects; product preannouncements; standards; vaporware;
Other versions of this item:
- David Dranove & Neil Gandal, 2001. "The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware," Law and Economics 0012001, EconWPA.
- David Dranove and Neil Gandal., 2000. "The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware," Economics Working Papers E00-293, University of California at Berkeley.
- Dranove, David & Gandal, Neil, 2000. "The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware," Competition Policy Center, Working Paper Series qt4961n0hj, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
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- Michal Grajek, 2002. "Identification of Network Externalities in Markets for Non-Durables," CIG Working Papers FS IV 02-32, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Baraldi, A. Laura, 2008. "Network Externalities and Critical Mass in the Mobile Telephone Network: a Panel Data Estimation," MPRA Paper 13373, University Library of Munich, Germany.
- Karaca-Mandic, Pinar, 2003. "Network Effects in Technology Adoption: The Case of DVD Players," Department of Economics, Working Paper Series qt3zj05321, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Dranove, David & Gandal, Neil, 2002. "The DVD Versus DIVX Standard War: Empirical Evidence of Network Effects and Preannouncement Effects," CEPR Discussion Papers 3634, C.E.P.R. Discussion Papers.
- Pinar Karaca-Mandic, 2011. "Role of complementarities in technology adoption: The case of DVD players," Quantitative Marketing and Economics, Springer, vol. 9(2), pages 179-210, June.
- Laura Rinaldi, 2008. "Estimation of network externalities and critical mass in the mobile telephone market: a panel data analysis of the OECD countries," Working Papers 1_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
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