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Institute of Business and Economic Research
Competition Policy Center
University of California, Berkeley
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The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware
David Dranove, Northwestern University
Neil Gandal, Tel Aviv University, University of California, Berkeley, and CEPR

Download the Paper (429 K, PDF file) - November 1, 2000 Tell a colleague about it.
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ABSTRACT:
In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing growth. We find that there are network effects in the DVD market and that the preannouncement of DIVX slowed down the adoption of DVD technology. This suggests that strategic preannouncements can indeed affect the outcome of a standards competition.

SUGGESTED CITATION:
David Dranove and Neil Gandal, "The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware" (November 1, 2000). Competition Policy Center. Paper CPC01-016.
http://repositories.cdlib.org/iber/cpc/CPC01-016

 
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