Standards wars are a common issue with network goods, and they occur because
A) they lead to network compatibility, allowing competing standards to coexist in a market by ensuring that the media can be used on competing formats.
B) they lead to network compatibility, allowing competing standards to split the market into geographical segments.
C) firms spend money to achieve productivity gains and cost reductions.
D) firms tend to compete vigorously to become the industry standard, thereby "owning" the network.

Question

Quizplus · Accepted Answer

Standards wars occur because firms compete aggressively to establish their technology or product as the industry standard, which can lead to significant market control and benefits. This competition is not about coexistence or geographical segmentation, nor is it primarily about productivity gains or cost reductions, but about dominating the network to gain a competitive advantage.

Standards Wars Are a Common Issue with Network Goods, and They