TY  - JOUR
ID  - publications16482
UR  - http://tse-fr.eu/pub/27693
A1  - Cabral, Luis
A1  - Salant, David J.
Y1  - 2014/09//
N2  - The EU mandated a single standard for second generation wireless telecommunications, whereas the US allowed several incompatible standards to battle for market share. Motivated by this example, we argue that a single standard leads to a free riding problem, and thus to a significant decrease in marginal incentives for R&D investment. In this context, keeping two separate standards may be a necessary evil to sustain a high level of R&D expenditures. We also provide conditions such that a non-standardization equilibrium is better for consumers and for society as a whole.
PB  - Elsevier
JF  - International Journal of Industrial Organization
VL  - 36
KW  - Standardization
KW  - Innovation
KW  - Free-riding
KW  - Spectrum regulation
SN  - 0167-7187
TI  - Evolving Technologies and Standards Regulation
SP  - 48
AV  - none
EP  - 56
ER  -