Abstract
Standard-setting organizations (SSOs) exhibit a variety of policy orientations toward the conflicting interests of technology developers and adopters. In this paper, we analyze a model that incorporates the technology choices of SSOs in standards wars and royalty determinations made by the developers of essential technologies. We show that both policy orientations toward developers relative to adopters and coordinated standard setting by SSOs that issue competing standards may result in a more-than-optimal number of essential technologies. Furthermore, we examine how SSOs’ technology choices may be affected by both network effects in standard adoption and coalition formation among developers.
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