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The Dvd‐vs.‐Divx Standard War: Empirical Evidence of Network Effects and Preannouncement Effects
Author(s) -
Dranove David,
Gandal Neil
Publication year - 2003
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/j.1430-9134.2003.00363.x
Subject(s) - competition (biology) , test (biology) , econometrics , economics , computer science , ecology , biology , paleontology
We test empirically for network effects and preannouncement effects 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. The data are generally consistent with the hypothesis that the preannouncement of DIVX temporarily slowed down the adoption of DVD technology.