Second Mover Advantage and Entry Timing

19 Pages Posted: 18 Oct 2012  

Vinh Du Tran

affiliation not provided to SSRN

David S. Sibley

University of Texas at Austin - Department of Economics

Simon Wilkie

University of Southern California Law School

Date Written: September 2012

Abstract

We describe a model of entry timing assuming that a second mover can benefit from observing the experience of a first mover. We focus on how market attractiveness characteristics such as size and cost affect the time until first entry. The effects depend on whether the number of participants is exogenous or endogenous. In the former case, a more attractive market leads to earlier entry. In the latter case, it leads to later entry. Treating the number of firms as an integer, free entry leads to non‐monotone, but testable, effects of market attractiveness on entry timing.

Suggested Citation

Tran, Vinh Du and Sibley, David S. and Wilkie, Simon, Second Mover Advantage and Entry Timing (September 2012). The Journal of Industrial Economics, Vol. 60, Issue 3, pp. 517-535, 2012. Available at SSRN: https://ssrn.com/abstract=2163385 or http://dx.doi.org/10.1111/j.1467-6451.2012.00490.x

Vinh Du Tran (Contact Author)

affiliation not provided to SSRN

No Address Available

David S. Sibley

University of Texas at Austin - Department of Economics ( email )

Austin, TX 78712
United States

Simon Wilkie

University of Southern California Law School ( email )

699 Exposition Boulevard
Los Angeles, CA 90089
United States

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