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 University of California at Berkeley in its series Economics Working Papers with number E00-293.
Date of creation: 01 Nov 2000
Date of revision:
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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.
- 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.
- Dranove, David & Gandal, Neil, 2000. "The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware," Department of Economics, Working Paper Series qt0979867q, Department of Economics, 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-11-05 (All new papers)
- NEP-ENT-2001-11-05 (Entrepreneurship)
- NEP-NET-2001-11-05 (Network Economics)
- NEP-TID-2001-11-05 (Technology & Industrial Dynamics)
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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).
- 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.
- 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.
- 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.
- 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.
- 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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