Manipulating Interface Standards as an Anti-Competitive Strategy
STANDARDS AND PUBLIC POLICY, S. Greenstein and V. Stango, eds., Cambridge University Press, Forthcoming
Posted: 8 Apr 2007
The creation of interface standards enables competition at the level of components, rather than competition in complete systems. Consumers often benefit from component competition. However, the standard-setting process might be manipulated to achieve anticompetitive ends. We consider the conditions under which a standards consortium could impose anticompetitive burdens on the market, and several strategies such a consortium might employ to achieve anti-competitive objectives. We present a new strategy - one-way standards - and discuss the conditions under which it can be anticompetitive.
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