Compatibility Standards And Industry Competition: Two Case Studies

Case histories of two data communication interfaces provide evidence of complex strategic behavior in the setting of voluntary compatibility standards. These cases show how subtle differences in the design of standards development organizations affect incentives to cooperate, giving rise to systemat...

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Bibliographic Details
Published inEconomics of innovation and new technology Vol. 4; no. 2; pp. 97 - 112
Main Author Lehr, William H
Format Journal Article
LanguageEnglish
Published Taylor and Francis Journals 1996
SeriesEconomics of Innovation and New Technology
Subjects
industrial organization
information technology and open systems
market structure and technical progress
telecommunications
Voluntary compatibility standards and standardization
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Summary:Case histories of two data communication interfaces provide evidence of complex strategic behavior in the setting of voluntary compatibility standards. These cases show how subtle differences in the design of standards development organizations affect incentives to cooperate, giving rise to systematic venue preferences. Dominant firms prefer more bureaucratic procedures offering greater protection for the status quo. The two interfaces, FDDI (under development in X3) and DQDB (under development in the IEEE) shed light on competition between the computer and telecommunications industries and the evolution of our communications infrastructure. They demonstrate the importance of standards for intra- and inter-industry competition.
ISSN:1043-8599
1476-8364
DOI:10.1080/10438599600000002