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Introduction to the Non-Cooperative Approach to Coalition Formation: The Case of the Blu-Ray/HD-DVD Standards' War


  • Nabyla Daidj
  • Cristina Grazia
  • Abdelhakim Hammoudi


The concepts of the theory of endogenous coalition formation have not been utilized much to analyze issues in the field of applied economics. In this paper, we show how these concepts make a relevant and innovative contribution to these issues. We first illustrate the fundamentals of this theory and we present the concept of internal and external cartel stability. We provide an illustration of this concept through a basic example of an oligopoly in a cartelization situation. Then, we show the relevance of these concepts by analyzing the battle between the high-definition DVD-player standards: Sony's Blu-Ray and NEC/Toshiba's HD-DVD.

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  • Nabyla Daidj & Cristina Grazia & Abdelhakim Hammoudi, 2010. "Introduction to the Non-Cooperative Approach to Coalition Formation: The Case of the Blu-Ray/HD-DVD Standards' War," Journal of Media Economics, Taylor & Francis Journals, vol. 23(4), pages 192-215.
  • Handle: RePEc:taf:jmedec:v:23:y:2010:i:4:p:192-215 DOI: 10.1080/08997764.2010.527206

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    References listed on IDEAS

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    2. Ravid, S Abraham, 1999. "Information, Blockbusters, and Stars: A Study of the Film Industry," The Journal of Business, University of Chicago Press, vol. 72(4), pages 463-492, October.
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    4. Leif Brandes & Egon Franck & Stephan Nüesch, 2008. "Local Heroes and Superstars," Journal of Sports Economics, , vol. 9(3), pages 266-286, June.
    5. Victor Ginsburgh, 2001. "Economics of arts and culture," ULB Institutional Repository 2013/1869, ULB -- Universite Libre de Bruxelles.
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    7. Mohanbir S. Sawhney & Jehoshua Eliashberg, 1996. "A Parsimonious Model for Forecasting Gross Box-Office Revenues of Motion Pictures," Marketing Science, INFORMS, pages 113-131.
    8. Charles J. Mullin & Lucia F. Dunn, 2002. "Using Baseball Card Prices to Measure Star Quality and Monopsony," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 620-632, October.
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