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Title:Coordination vs. differentiation in a standards war: 56K modems PDF Logo
Authors:Augereau, Angelique
Greenstein, Shane M
Rysman, Marc
Issue Date:2004
Series/Report no.:CSIO working paper 0062
Abstract:56K modems were introduced under two competing incompatible standards. We show the importance of competition between Internet Service Providers in the adoption process. We show that ISPs were less likely to adopt the technology that more competitors adopted. This result is particularly striking given that industry participants expected coordination on one standard or the other. We speculate about the role of ISP differentiation in preventing the market from achieving standardization until a standard setting organization intervened.
JEL:L15
L63
L86
Document Type:Working Paper
Appears in Collections:CSIO Electronic Working Papers, Northwestern University

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