We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two …-dimensional spatial competition model. We develop a new methodology to analyze competition on a torus and show that there is a fundamental … conflict of interest between consumers and producers over the standardization decision. Consumers prefer standardization with …

This paper proposes a model for a certification market with an imperfect testing technology. Such a technology only …. When only one certifier with such testing technology is present in the market, it is found that this monopoly certifier can … be completely ignored in equilibrium, in contrast to the prediction of a model with perfect testing technology. A …