NET Institute Working Paper No. 04-14
32 Pages Posted: 15 Nov 2004
Date Written: October 2004
The 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' tradeoffs 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 find that there appeared to be considerable uncertainty about rivals' technological progress.
Suggested Citation: Suggested Citation
Kretschmer, Tobias and Muehlfeld, Katrin, Co-opetition in Standard-Setting: The Case of the Compact Disc (October 2004). NET Institute Working Paper No. 04-14. Available at SSRN: https://ssrn.com/abstract=618484 or http://dx.doi.org/10.2139/ssrn.618484