Firms that leverage proprietary standards for market dominance do not necessarily inhibit innovation.

Question

Quizplus · Accepted Answer

Proprietary standards can actually incentivize firms to invest in research and development to create new and better products or services that are compatible with their standards. Additionally, competition from other firms can lead to the development of alternative standards, further promoting innovation. While proprietary standards may limit interoperability between different products or services, this does not necessarily inhibit overall innovation.

Firms That Leverage Proprietary Standards for Market Dominance Do Not