uncertainty. We designed a multi-period experiment in which each period consisted of two stages, an R&D phase and a pricing stage …. Participants in the experiment had almost no information about the underlying functions, parameters, and probabilities. Subjects …' behavior in the fundamentally uncertain environment of our experiment may best be characterized as some kind of procedural …

two indexes to evaluate consumer taste risk and to evaluate the firm's competitive advantage, respectively. Consumer taste … risk can be measured by the correlation between the average consumer taste and the density of consumer taste with a strong … correlation meaning a large risk exposure, indicating a more likely hit-or-miss result for the new product. The firm's competitive …

experiment with skill-based payoffs by systematically varying two key elements of the market environment: demand risk and … expected market size. Results show that people's reactions to demand risk depend on the market size: in small markets people … inefficiencies in both cases: demand risk significantly amplifies overentry in small markets and underentry in large markets. Skill …