Is it better to move first, or second--- to innovate, or to imitate? Suppose one player has superior information about which of two new markets is better. If he enters first, he might be able to secure a natural monopoly. (The less-informed player also has this motive.) If he enters second, he...

This paper analyzes the market entry of Red Parcel Post, a new player in the German Business-to-Business (B2B) parcel market. Currently there are four large service providers in the German B2B parcel market. Each of these incumbent providers operates - albeit with varying degrees of automation -...

For several years, an increasing number of firms have been investing in Open Source Software (OSS). While improvements in such a non-excludable public good cannot be appropriated, companies can benefit indirectly in a complementary proprietary segment. We study this incentive for investment in...

The concept of «knowledge-based industries» (KBIs) has been widely used both in the academy and in policy-making over the last decade, due to the increasing role those industries play – both in terms of value added and employment – in contemporary, advanced economies. In this paper we...

In both entry deterrence theory and practice, customer sorting in response to stockouts determines the best reply responses of incumbents threatened by entry. People Express (PE) chose the right strategy but for the wrong entry game and ended up being deterred in the Southeast region by the...

Foreign firms to break into a new market commonly undercut domestic prices and, hence, subsidise the consumer's costs of switching in order to get a positive market share. However, this may constitute the act of dumping as drawn in Article VI of the General Agreement on Tariffs and Trade (GATT)....

Over the past decade, world trade has almost doubled from $7 trillion to more than $13 trillion, and Saudi Arabia is by far the largest trading country in the Middle Eastern region, with total trade volume in excess of $102 billion. This paper reviews the economic structure of Saudi Arabia....

Research indicates a positive correlation between firm-specific characteristics and international entrepreneurship, vis-a-vis the mode of market entry selected for overseas markets. Equally, the level of international entrepreneurial orientation is related to specific prevailing factors in the...

We study a market-entry game with a second-mover advantage. In the symmetric equilibrium, there can be a non-monotonic relationship between the probability with which a player will invest (entry) and the length of time until the deadline. Moreover, the probability of investment can move...

"Winner-Take-All"-markets, i.e. markets in which the relative and not the absolute performance is decisive, have gained in importance. Such markets have a tendency to provoke inefficiently many entries. We investigate the functioning of such markets with the help of experiments and show that...