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Voting on Standardisation

Author

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  • Goerke, Laszlo
  • Holler, Manfred J

Abstract

This paper analyzes equilibria of voting on commodity standards within the framework of a Farrell-Saloner model that takes into consideration the trade-off between network effects and losses from a reduction of variety. Social welfare implications are derived and discussed with respect to manipulations of majority rules. The findings indicate that welfare implications of standards are highly sensitive to the decision procedure and that the choice of the decision rule is nontrivial as it can at least prevent worst outcomes if not guarantee optimal results. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Goerke, Laszlo & Holler, Manfred J, 1995. "Voting on Standardisation," Public Choice, Springer, vol. 83(3-4), pages 337-351, June.
    • Handle: RePEc:kap:pubcho:v:83:y:1995:i:3-4:p:337-51
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    Cited by:

    1. Pierre Larouche & Florian Schuett, 2019. "Repeated interaction in standard setting," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(3), pages 488-509, June.
    2. Daniel F Spulber, 2019. "Standard Setting Organisations and Standard Essential Patents: Voting and Markets," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1477-1509.
    3. Justus Baron & Daniel F. Spulber, 2018. "Technology Standards and Standard Setting Organizations: Introduction to the Searle Center Database," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 462-503, September.
    4. Laszlo Goerke & Manfred Holler, 1998. "Strategic Standardization in Europe: A Public Choice Perspective," European Journal of Law and Economics, Springer, vol. 6(2), pages 95-112, September.
    5. Baron, Justus & Kanevskaia, Olia, 2023. "Wearing multiple hats—The role of working group chairs’ affiliation in standards development," Research Policy, Elsevier, vol. 52(9).

    More about this item

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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