Introduction to the Non-Cooperative Approach to Coalition Formation: The Case of the Blu-Ray/HD-DVD Standards' War |
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| Authors: | Nabyla Daidj Cristina Grazia Abdelhakim Hammoudi |
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| Institution: | 1. Department of Management , Marketing, and Strategy Institut Telecom, Telecom Business School , France;2. Agricultural Economics and Engineering Department , University of Bologna , Italy;3. Department of Economics , Institut National de la Recherche Agronomique , France |
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| 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. |
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