Coordination vs. Differentiation in a Standards War : 56K Modems

Angelique Augereau, Shane Greenstein, Marc Rysman

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 form achieving standardization until a government organization intervened

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Year of publication:	March 2004
Authors:	Augereau, Angelique
Other Persons:	Rysman, Marc (contributor) ; Greenstein, Shane (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Standardisierung \| Standardization \| Wettbewerb \| Competition \| Theorie \| Theory

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