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The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware (2000)

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.

Publication details
Download http://repositories.cdlib.org/iber/cpc/CPC01-016
Publisher eScholarship Repository, Competition Policy Center, Institute of Business and Economic Research, University of California, Berkeley
Repository University of California eScholarship Repository (United States)
Keywords network effects, product preannouncements, standards, vaporware
Type text