Missing the Starting Gun? Entry Timing Decisions into New Market Niches
This 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.
|Date of creation:||31 Dec 2003|
|Contact details of provider:|| Postal: Piazza dei Martiri della Liberta, 33, 56127 Pisa|
Web page: http://www.lem.sssup.it/
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- James Bessen & Robert M. Hunt, 2007.
"An Empirical Look at Software Patents,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 16(1), pages 157-189, 03.
- James Bessen & Robert M Hunt, 2004. "An Empirical Look at Software Patents," Levine's Working Paper Archive 122247000000000167, David K. Levine.
- James Bessen & Robert M. Hunt, 2004. "An empirical look at software patents," Working Papers 03-17, Federal Reserve Bank of Philadelphia.
- Aron, Debra J & Lazear, Edward P, 1990. "The Introduction of New Products," American Economic Review, American Economic Association, vol. 80(2), pages 421-426, May.
- William A. Brock & Cars H. Hommes, 1997. "A Rational Route to Randomness," Econometrica, Econometric Society, vol. 65(5), pages 1059-1096, September.
- Brock, W.A., 1995. "A Rational Route to Randomness," Working papers 9530, Wisconsin Madison - Social Systems.
- Brock, W.A. & Hommes, C.H., 1996. "A Rational Route to Randomness," Working papers 9530r, Wisconsin Madison - Social Systems.
- 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. Full references (including those not matched with items on IDEAS)
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