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Wintel: Cooperation and Conflict

Casadesus-Masanell, Ramon, Yoffie, David B.·2007·Management Science

Abstract

We study competitive interactions between Intel and Microsoft, two producers of complementary products. In a system of complements, like the PC, the value of the final product depends on how well the different components work together. This, in turn, depends on the firms’ investment in complementary R&D. We ask whether Intel and Microsoft will want to cooperate and make the final product as valuable as possible. Contrary to the popular view that two tight complements will generally have well aligned incentives, we demonstrate that natural conflicts emerge over pricing, the timing of new product releases, and who captures the greatest value at different phases of product generations.

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Metadata

Authors
Casadesus-Masanell, R., & Yoffie, D. B.
Venue
Management Science
Published
2007-04
Volume
53
Issue
4
Pages
584-598
ISSN
  • 0025-1909 (ISSN-L)
  • 1526-5501
OpenAlex
W2071387358
Cited by
202
References
0
FWCI
38.23
Type
journal article
Language
en
Open access
closed

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Casadesus-Masanell, R., & Yoffie, D. B. (2007). Wintel: Cooperation and Conflict. Management Science. https://doi.org/10.1287/mnsc.1060.0672

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