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Title: "Coordination on Formal vs. de facto Standards: A Dynamic Approach"
Author: Paul Belleflamme Queen Mary and Westfield College, University of London
Source: European Journal of Political Economy, Volume 18, Issue 1, Pages 153-176
Publication Date: March 2002
Free/Fee: Free Access
Reads: 6933
Abstract: Formal standards arise out of deliberations of standards-writing organizations, while de facto standards result from unfettered market processes. Therefore, the formers are of a higher quality and legitimacy, but are slower to develop than the latters. To address this trade-off, we analyze a dynamic game where two players choose between one evolving formal standard and one mature de facto standard. The outcome of the game relies on the coordination mechanism used by the players, on the relative value they attach to successful coordination, and on the formal standard's performance at the end of the game.
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