Competition for the Field: DVD Standard Edition

Josh Wright —  18 December 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.