Network Effects, Standardization, and the Internet: What Have We Learned From The DVD Vs. DIVX Battle?

Preprint OPEN
Dranove, David; Gandal, Neil;
  • Subject: Network Effects; Product Preannouncements; Standardization; Vaporware
    • jel: jel:K21 | jel:L82

Two important welfare implications of network effects are that (1) market forces often result in suboptimal standardization, that is, left alone the market may fail to achieve standardization when it is socially desirable and (2) even if the market settles on a standard... View more
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