Find out more about this
Gesmer Updegrove has represented more than 125 standards consortia and open source foundations, including:
View Full Client List
Useful Links

Communications Center Press Center Sitemap

Tools

Text Size:
Default  Large

RSS Feeds

Bookmark and Share

Standards <Meta>Library


Structures/Types/Models

Accredited SDOs

(Select a New Topic or Category)


Title: "A Duopoly Model of Technological Externalities: Standards and Compatibility"
Author: Sanford V. Berg Florida Public Utilities Professor, Department of Economics, University of Florida.
Publication Date: December 27 1993
Free/Fee: Free Access
Reads: 3829
Abstract: The existence of technological incompatibilities means that components from one system cannot be used with a basic product which is part of another system without an adaptor or (potentially 'costly) modifications. Demand for the basic product would be higher if all producers of the basic product adopted identical (or even &quot;similar&quot;) technical standards. However, deviations from a firm's preferred standard will raise that firm's production costs. This paper develops a duopoly model, wherein each firm simultaneously chooses a technical standard and output level for a basic product. In this model, compatibility can promote competition. Results for rivalry are compared with the mandated second-best standards and welfare maximizing outcomes.
Link: Full Text