The electrical plug example is perfect. Nothing says "we figured out lock-in economics" like needing a drawer full of adaptors just to charge your phone in differnet countries. Atleast patents don't require literal baggage.
Really solid breakdown of how lock-in transforms bargaining dynamics. The Williamson framing about the ex-ante to ex-post shift is key here. Had a situation a while back where we had to license tech built intostandards and the negotiation felt way more constrained than typical patent deals. What's interesting is that this power imbalance could've been way worse without FRAND commitmens from the start.
The electrical plug example is perfect. Nothing says "we figured out lock-in economics" like needing a drawer full of adaptors just to charge your phone in differnet countries. Atleast patents don't require literal baggage.
Really solid breakdown of how lock-in transforms bargaining dynamics. The Williamson framing about the ex-ante to ex-post shift is key here. Had a situation a while back where we had to license tech built intostandards and the negotiation felt way more constrained than typical patent deals. What's interesting is that this power imbalance could've been way worse without FRAND commitmens from the start.