Co-opetition in Standard-Setting: The Case of the Compact Disc
AbstractThe success of the CD has (partly) been attributed to the ability of Sony, Philips and Matsushita to cooperate in the run-up to the DAD conference in 1981, where the technological standard was set. We model the situation leading up to the conference in a simple game with technological progress and the possibility of prelaunching a technology. We identify players' tradeo s between prelaunching (which ends technological progress) and continued development (which involves the risk of being pre-empted). Contrasting outcomes with complete and incomplete information, we nd that there appeared to be considerable uncertainty about rivals' technological progress.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 04-14.
Length: 32 pages
Date of creation: Oct 2004
Date of revision: Oct 2004
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-26 (All new papers)
- NEP-ICT-2006-08-26 (Information & Communication Technologies)
- NEP-INO-2006-08-26 (Innovation)
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