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The timing of product introduction and the credibility of compatibility decisions

Regibeau, Pierre and Rockett, Katherine E (1996) 'The timing of product introduction and the credibility of compatibility decisions.' International Journal of Industrial Organization, 14 (6). pp. 801-823. ISSN 0167-7187

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We analyze the compatibility choices of two firms which must also decide when to introduce their goods in a market characterized by network externalities. We show that the firms' incentives to achieve compatibility depend crucially on the time at which the degree of compatibility must be chosen. This raises the possibility of time inconsistencies, as a firm which initially favors compatibility might prefer incompatibility once one of the two goods has been introduced. We also determine the socially optimal standardization policies, both in a domestic and in an international context.

Item Type: Article
Uncontrolled Keywords: compatibility; standards; R&D
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 11 Jul 2012 16:20
Last Modified: 18 Aug 2022 13:06

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