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Introduction to the Non-Cooperative Approach to Coalition Formation: The Case of the Blu-Ray/HD-DVD Standards' War

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  • Nabyla Daidj
  • Cristina Grazia
  • Abdelhakim Hammoudi

Abstract

The concepts of the theory of endogenous coalition formation have not been utilized much to analyze issues in the field of applied economics. In this paper, we show how these concepts make a relevant and innovative contribution to these issues. We first illustrate the fundamentals of this theory and we present the concept of internal and external cartel stability. We provide an illustration of this concept through a basic example of an oligopoly in a cartelization situation. Then, we show the relevance of these concepts by analyzing the battle between the high-definition DVD-player standards: Sony's Blu-Ray and NEC/Toshiba's HD-DVD.

Suggested Citation

  • Nabyla Daidj & Cristina Grazia & Abdelhakim Hammoudi, 2010. "Introduction to the Non-Cooperative Approach to Coalition Formation: The Case of the Blu-Ray/HD-DVD Standards' War," Journal of Media Economics, Taylor & Francis Journals, vol. 23(4), pages 192-215.
    • Handle: RePEc:taf:jmedec:v:23:y:2010:i:4:p:192-215
    DOI: 10.1080/08997764.2010.527206
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    References listed on IDEAS

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    1. Christ, Julian P. & Slowak, André P., 2009. "Why blu-ray vs. HD-DVD ist not VHS vs. Betamax: The co-evolution of standard-setting consortia," FZID Discussion Papers 05-2009, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    2. Kretschmer, Tobias & Muehlfeld, Katrin, 2006. "Co-opetition and prelaunch in standard-setting for developing technologies," LSE Research Online Documents on Economics 19843, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. Alejandro Caparrós & Eric Giraud-Héraud & Abdelhakim Hammoudi & Tarik Tazdaït, 2011. "Coalition Stability with Heterogeneous Agents," Economics Bulletin, AccessEcon, vol. 31(1), pages 286-296.

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