Missing the Starting Gun? Entry Timing Decisions into New Market Niches
AbstractThis study analyzes incumbent entry timing decisions in new markets in the case of Encryption Software (ES). In ES first technological movers were slow to enter the downstream market, losing their initial advantages to the benefit of newcomers. This work tests the hypothesis that this wait-and-see strategy was an optimal choice compared to the assumption of inertia embedded in the decision process of potential entrants. We find that entry decision is not the outcome of firm rational balancing among different strategic variables, but it is more similar to a heuristic process that fails to accommodate the full logic of decision.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2003/29.
Date of creation: 31 Dec 2003
Date of revision:
Entry; Entrepreneurship; Innovation; Software.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
- NEP-COM-2004-04-11 (Industrial Competition)
- NEP-ENT-2004-04-11 (Entrepreneurship)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brock, W.A. & Hommes, C.H., 1996.
"A Rational Route to Randomness,"
9530r, Wisconsin Madison - Social Systems.
- James Bessen & Robert M Hunt, 2004.
"An Empirical Look at Software Patents,"
Levine's Working Paper Archive
122247000000000167, David K. Levine.
- Aron, Debra J & Lazear, Edward P, 1990. "The Introduction of New Products," American Economic Review, American Economic Association, vol. 80(2), pages 421-26, May.
- Bresnahan, Timothy F, 1985. "Post-entry Competition in the Plain Paper Copier Market," American Economic Review, American Economic Association, vol. 75(2), pages 15-19, May.
- John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.