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Protecting Your Turf: First-mover Advantages as a Barrier to Competitor Innovation


  • Briggeman, Brian C.
  • Gunderson, Michael A.
  • Detre, Joshua D.


Product innovation for a juice company and its associated first-mover advantages are analyzed. Stochastic simulation is used to model market size, price, competitive intensity, and the likelihood of competitor entry. Results of moving first allow the firm to capture market share, realize first-mover advantages in excess of $2 million, and deter competitor innovation. In addition, the proposed model is flexible enough to be applied in other industries.

Suggested Citation

  • Briggeman, Brian C. & Gunderson, Michael A. & Detre, Joshua D., 2006. "Protecting Your Turf: First-mover Advantages as a Barrier to Competitor Innovation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 9(1), pages 1-18.
  • Handle: RePEc:ags:ifaamr:8206

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    References listed on IDEAS

    1. Heidrun C. Hoppe & Ulrich Lehmann-Grube, 2001. "Second-Mover Advantages in Dynamic Quality Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(3), pages 419-433, September.
    2. Allan W. Gray & Joshua D. Detre & Brian C. Briggeman, 2005. "Valuing Limited Information in Decision Making Under Uncertainty," Working Papers 05-02, Purdue University, College of Agriculture, Department of Agricultural Economics.
    3. Hoppe, Heidrun C., 2000. "Second-mover advantages in the strategic adoption of new technology under uncertainty," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 315-338, February.
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