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Signals and Choices in a Competitive Interaction: The Role of Moves and Messages

Author

Listed:
  • Marian Chapman Moore

    (Fuqua School of Business, Duke University, Durham, North Carolina 27706)

Abstract

This study examines the effect of signals from a competitor on the decisions of managers in a situation of strategic interdependence. The context is a multi-period pricing simulation and the payoffs are structured in accordance with a Prisoner's Dilemma. The signals consist of messages from the competitor and observations of the pricing decisions made by the competitor. The managers' responses to particular types of signals and particular combinations of moves and messages change over the course of the simulation. Suggestions for future research on competitive signaling are offered.

Suggested Citation

  • Marian Chapman Moore, 1992. "Signals and Choices in a Competitive Interaction: The Role of Moves and Messages," Management Science, INFORMS, vol. 38(4), pages 483-500, April.
  • Handle: RePEc:inm:ormnsc:v:38:y:1992:i:4:p:483-500
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    File URL: http://dx.doi.org/10.1287/mnsc.38.4.483
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    Citations

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    Cited by:

    1. David Soberman & Hubert Gatignon, 2005. "Research Issues at the Boundary of Competitive Dynamics and Market Evolution," Marketing Science, INFORMS, vol. 24(1), pages 165-174, September.
    2. Bruce H. Clark & David B. Montgomery, 1998. "Deterrence, Reputations, and Competitive Cognition," Management Science, INFORMS, vol. 44(1), pages 62-82, January.
    3. repec:dau:papers:123456789/4638 is not listed on IDEAS
    4. Kohli, Chiranjeev, 1999. "Signaling New Product Introductions: A Framework Explaining the Timing of Preannouncements," Journal of Business Research, Elsevier, vol. 46(1), pages 45-56, September.
    5. Pruyn, Ad & Riezebos, Rik, 2001. "Effects of the awareness of social dilemmas on advertising budget-setting: A scenario study," Journal of Economic Psychology, Elsevier, vol. 22(1), pages 43-60, February.
    6. Rebecca Guidice & G. Alder & Steven Phelan, 2009. "Competitive Bluffing: An Examination of a Common Practice and its Relationship with Performance," Journal of Business Ethics, Springer, vol. 87(4), pages 535-553, July.
    7. Berend Wierenga & Gerrit H. Van Bruggen & Richard Staelin, 1999. "The Success of Marketing Management Support Systems," Marketing Science, INFORMS, vol. 18(3), pages 196-207.

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