In most cases, the premature announcement of a future product cannot be anti-competitive. When there are network effects, however, firms may have incentives to strategically prenannounce products; such preannouncements are often referred to as "vaporware." Anticompetitive vaporware allegations have been leveled at IBM and Microsoft. Despite the antitrust concern about vaporware, there is no empirical work on the issue. In this paper, we empirically test for network effects and vaporware effects in the DVD market. We find that there are network effects in the DVD market and that the preannouncement by DIVX indeed slowed down the adoption of DVD technology.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by Tel Aviv in its series Papers with number
14-99.
Find related papers by JEL classification: K2 - Law and Economics - - Regulation and Business Law L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)