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.
Cite this Article
Josh Wright, Competition for the Field: DVD Standard Edition, Truth on the Market (December 18, 2007), https://truthonthemarket.com/2007/12/18/competition-for-the-field-dvd-standard-edition/