Determinants of success in setting standards coalition: empirical evidence from the standard war of the blue laser DVDs

Abstract

This article examines what determines the success of a standard coalition. We test empirically for network effect, experience effect, and industrial and geographical relatedness in the Blu-ray versus HD-DVD standard war.

Keywords:

• innovation
• standards
• relatedness
• Blu-ray
• HD-DVD

JEL Classification:

• D21
• A10
• D20
• D40
• D49

Notes

¹ Indeed, because we are dealing with two standards only, the number of partners cannot be directly used in the model: such a number would be a perfect predictor of success.

² We checked that outliers did not drive this result.