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Voting on Standardisation

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  • Goerke, Laszlo
  • Holler, Manfred J

Abstract

This paper analyzes equilibria of voting on commodity standards within the framework of a Farrell-Saloner model that takes into consideration the trade-off between network effects and losses from a reduction of variety. Social welfare implications are derived and discussed with respect to manipulations of majority rules. The findings indicate that welfare implications of standards are highly sensitive to the decision procedure and that the choice of the decision rule is nontrivial as it can at least prevent worst outcomes if not guarantee optimal results. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Goerke, Laszlo & Holler, Manfred J, 1995. "Voting on Standardisation," Public Choice, Springer, vol. 83(3-4), pages 337-351, June.
  • Handle: RePEc:kap:pubcho:v:83:y:1995:i:3-4:p:337-51
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    Cited by:

    1. Laszlo Goerke & Manfred Holler, 1998. "Strategic Standardization in Europe: A Public Choice Perspective," European Journal of Law and Economics, Springer, vol. 6(2), pages 95-112, September.

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    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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