Truth on the Market

Academic commentary on law, business, economics and more

Competition for the Field: DVD Standard Edition

Posted by Josh Wright on December 18, 2007

Craig Newmark highlights this offer at Amazon allowing consumers who purchase an HD-DVD player up to 10 free DVDs. Newmark cites the DVD offer as an example of upfront competition resolving standard-based coordination problems in the presence of network externalities. Of course, Blu-ray also has a free DVD offer for those purchasing a Blu-ray machine this holiday season. These are excellent examples of the significant consumer benefits that arise from competition for the field.

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