GDL

Journal from gdlhub / 2017-08-14 11:52:53
Oleh : Christopher B. Barrett, Yi-Nung Yang, ELSEVIER (cbb2@cornell.edu (C.B. Barrett), yinyang@ms17.hinet.net (Y.-N. Yang).)
Dibuat : 2010-06-30, dengan 1 file

Keyword : Rational, incompatibility, international, product, standards
Url : http://www.elsevier.nl / locate /econbase

International product standardization enables traditional, price-based competition. But the


existence of redesign costs or network effects creates market frictions that diminish the


incentive to standardize if there already exists a different technology in an established


market. This leads to multi-attribute competition between products and will generally


reduce trade flows. Not only do incumbent firms using a different technology have an


incentive to deviate from an international standard, but a host country government


concerned for its consumers’ welfare has no incentive to enforce the international standard


and may even value deviation from the international standard through technical barriers to


trade.

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