Standard-setting organizations (SSOs) are collectively self-governed industry associations, formed by innovators and implementers. They are a key organizational form to agree on and manage technical standards, and form the foundation for many technological and economic sectors. Together with Clemens Fiedler and Maria Larrain, we develop a model of endogeneous SSO participation that highlights different incentives for joining (namely licensing, learning, and implementation). We analyze equilibrium selection and conduct comparative statics for a policy parameter that is related to implementer-friendly Intellectual Property Rights policies, or alternatively, minimum viable implementation. The results can reconcile existing evidence, including that many SSO member firms are small. The extent of statutory participation of implementers in SSO control has an inverted U-shape effect on industry profits and welfare.

The former TILEC Discussion Paper is now forthcoming in Research Policy. More background is here.