Intervention Behaviors of Government on Technical Standard Alliance and Economic Outcomes

Abstract

In this paper, the intervention behaviors of govern me t on standard-setting alliance and the corresponding outcomes are studied . In etails, we formulate a game model to describe and compare four types of popular intervention behaviors of governments, which are no invention, invention on t he establishment of alliance between potential partners, providing subsidies on alliance ’s R&D activity, and providing subsidies on alliance’s production activity. Two ma in findings are obtained. First, deep interventions of government on partner relationship inside of the alliance are more beneficial for standard establishments. Second, kno wledge transfers among alliance partners could contribute significantly to the acce leration and establishment of technical standards. Therefore, government interventions on s ta dard-setting alliance could be effective if such behaviors could stimulate knowled g sharing between alliance members.