Why are some coalitions more successful than others in setting standards? Empirical evidence from the Blu-ray vs. HD-DVD standard war

Standard-setting coalitions are increasingly composed of rival firms from different sectors and are characterized by simultaneous and/or sequential cooperation and competition among their members. This paper examines why firms choose to belong to two standard-setting coalitions instead of one and what determines the success of a standard coalition. We test empirically for network effect, experience effect, and coopetitive effect in the Blu-ray vs. HD-DVD standard war. We find that the higher the similarity of the members in the coalition, the greater the probability of standard coalition success. Furthermore, relatedness leads to a greater probability of joining both competing coalitions, but at a given degree of knowledge difference, an opposite effect exists.Blu-ray; HD-DVD; coalition; coopetition; standard war

Why are some coalitions more successful than others in setting standards? Empirical evidence from the Blu-ray vs. HD-DVD standard war

Standard-setting coalitions are increasingly composed of rival firms from different sectors and are characterized by simultaneous and/or sequential cooperation and competition among their members. This paper examines why firms choose to belong to two standard-setting coalitions instead of one and what determines the success of a standard coalition. We test empirically for network effect, experience effect, and coopetitive effect in the Blu-ray vs. HD-DVD standard war. We find that the higher the similarity of the members in the coalition, the greater the probability of standard coalition success. Furthermore, relatedness leads to a greater probability of joining both competing coalitions, but at a given degree of knowledge difference, an opposite effect exists

EVIDENCES ON INTER-FIRM R&D PARTNERSHIPS IN THREE HIGH-TECH INDUSTRIES

This paper describes inter-firm partnerships in three major high-tech industries over the 1985-2005 period. We found that the architecture of the respective networks had evolved toward a ‘small world' in the early 1990s. We also found that the number of alliances collapsed in the late 1990s. This result roughly follows the number of patents granted in the respective industries and is correlated to an increase in market concentration, and to some extent to the rising number of mergers and acquisitions

Small world characteristics of innovative smart card networks

International audienceThe paper examines the evolving innovative network structure in the smart card industry between 1992 and 2006. The aim is to search for sub-groups within the main network which allowed better understanding of the global innovative network structure and the speed of the smart card innovation system. Based on a proprietary database covering inter-firm agreements in the smart card industry, our empirical results reveal the existence of small-world structures, widely thought to enhance creativity and knowledge diffusion, and the emergence of giant components of innovative networks. Three notable features of this small world structure were the presence of broker incumbents, the decrease of average degree, and the increase of average distance of the networks

SMALL WORLD CHARACTERISTICS OF INNOVATIVE SMART CARD NETWORKS

The paper examines the evolving innovative network structure in the smart card industry between 1992 and 2006. The aim is to search for sub-groups within the main network which allowed better understanding of the global innovative network structure and the speed of the smart card innovation system. Based on a proprietary database covering inter-firm agreements in the smart card industry, our empirical results reveal the existence of small-world structures, widely thought to enhance creativity and knowledge diffusion, and the emergence of giant components of innovative networks. Three notable features of this small world structure were the presence of broker incumbents, the decrease of average degree, and the increase of average distance of the networks.Small world networks, smart card industry, innovation system, networks of innovation, knowledge creation

The market difficulty for the use of the Moneo electronic purse

http://www.arraydev.com/commerce/JIBC/2006-12/mchirgui.htmInternational audienceWhether in other countries the introduction of electronic purse as a new means for micropayment has known a success (Belgium with Proton and Hong Kong with Octopus), in France the electronic purse, namely Moneo, meets at some problems preventing a widespread adoption and use by customers and merchants. Based on the two most highly successful schemes – Proton and Octopus - some potential solutions are proposed, dealing mainly with the technological and economic aspect, in order to help the adoption and the use of Moneo

Les déterminants économiques de l'utilisation du Moneo : un modèle théorique

[eng] In this paper we present a model providing insights into some questions related to the use of the electronic purse. (1) Why electronic purse is more expensive for merchants? (2) Given this cost, why do merchants accept it? (3) What do card issuers gain from offering electronic purse? For this aim, we introduce a microeconomic approach consisting, firstly, to highlight the difficulties of the current Moneo business model, secondly, to emphasize the role of the introduction of a compensation mechanism between financial institutions as alternative approach to the current Moneo business model. The aim is to show how an interchange fee in the current Moneo business model may modify the merchants and consumers' utility or profitability. [fre] Dans ce document nous présentons un modèle qui tente d'apporter une réponse à certaines questions relatives à l'utilisation du porte-monnaie électronique (PME). (1) Pourquoi le PME est-il plus cher pour les marchands ? (2) Sachant leurs coûts, pourquoi certains marchands les acceptent-ils ? (3) En offrant ces cartes, quels profits les émetteurs de la carte dégagent-ils ? En cela, nous adoptons une méthodologie microéconomique qui consiste, tout d'abord, à mettre en évidence les difficultés du modèle d'affaires actuel du PME Moneo, ensuite, à proposer une approche alternative au modèle d'affaires actuel en mettant l'accent sur le rôle de l'introduction d'un mécanisme de compensation entre les institutions financières. Il s'agit de montrer comment une commission d'interchange dans le modèle d'affaires actuel permettrait de modifier l'utilité ou la profitabilité du PME pour les marchands et les consommateurs.

Dynamics of R&D networked relationships and mergers and acquisitions in the smart card field

This paper analyzes how the structure and the evolution of inter-firm agreements have shaped the development of the smart card industry. The aim is to establish a closer connection between the evolution of inter-firm agreements in the smart card industry and the patterns of change of technology and demand in this new high-tech industry. Based on a proprietary database covering both collaborative agreements and mergers and acquisitions (M&As) occurring in this industry over the period 1992-2006, we find that the evolution of technology and market demand shapes the dynamics of R&D networks and M&As are likely to change the industry structure. We also find that a small group of producers - first-movers - still control the industry and technological trajectories. Their position arises not for oligopolistic reasons of market structure, but for technological and organizational reasons.Inter-firm R&D agreements Mergers and acquisitions Networked oligopoly Smart card industry Dual market structure