Second-Mover Advantages with Asymmetric Costs and Information Updates: A Product Life Cycle Perspective
✍ Scribed by Wenge Zhu; Xiaohui (Eva) Xu
- Publisher
- John Wiley and Sons
- Year
- 2011
- Tongue
- English
- Weight
- 108 KB
- Volume
- 32
- Category
- Article
- ISSN
- 0143-6570
- DOI
- 10.1002/mde.1552
No coin nor oath required. For personal study only.
✦ Synopsis
Two firms with asymmetric costs engage in a Stackelberg game under multiple levels of uncertainty with information updating. A product life cycle perspective is employed to reveal when and why a second-mover may have an advantage. At early stages in the product life cycle, when uncertainty is the dominating factor, the impact of uncertainty may be either positive or negative. As a result, the Stackelberg leader faces the possibility of either overshooting or losing its market leadership position to the second-mover. In later market stages, when cost is more important, a process-innovating second-mover may accrue higher profits.