Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition

Chen, Chia-Hui; Ishida, Junichiro; Mukherjee, Arijit

Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition

Chen, Chia-Hui; Ishida, Junichiro; Mukherjee, Arijit

Institute of Social and Economic Research Discussion Papers, 2021, 1132, 1-47

Number of Access:441（2025-11-04 13:16 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/81253

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Title	Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition
Creator	NRID 1000020768238 1000020768238 CreatorName Chen, Chia-Hui
	NRID 1000040324222 1000040324222 ORCID 0000-0002-0674-0216 0000-0002-0674-0216 researchmap permalink read0116302 read0116302 Scopus Author ID 36927932200 36927932200 CreatorName Ishida, Junichiro
	CreatorName Mukherjee, Arijit
Subject	market entry
	market competition
	private learning
	signaling
	preemption
	consumer inertia
Abstract	Timing of market entry is one of the most important strategic decisions a firm must make, but its decision process becomes convoluted with information and payoff spillovers. The threat of competition pushes firms to enter earlier to preempt their rivals while the possibility of learning make them cautiously wait for others to take action. This combination amounts to a new class of timing games where first-mover advantage first emerges as in preemption games but second-mover advantage later prevails as in wars of attrition. Our model identifies under what conditions a firm becomes a pioneer, early follower or late entrant and shows that the timing of entry is excessively early (late) when there emerges a late entrant (early follower). We also argue that consumer inertia is often efficiency-enhancing in this environment, highlighting an elusive link between static market competition and dynamic entry competition.
Publisher	The Institute of Social and Economic Research, Osaka University
Source Title	Institute of Social and Economic Research Discussion Papers
Volume (Issue)	1132
Page	1-47
Date of Issued	2021-04
Language	English
Handle URL	https://hdl.handle.net/11094/81253
PISSN	0473453X
eISSN	24350982
Relation.references	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2021/DP1132.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	Institute of Social and Economic Research Discussion Papers

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2021, 1132, p. 1-47
DC.title	Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition
DC.creator	Chen, Chia-Hui
	Ishida, Junichiro
	Mukherjee, Arijit
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2021-04
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2021/DP1132.pdf
DC.subject	market entry
	market competition
	private learning
	signaling
	preemption
	consumer inertia
DCTERMS.abstract	Timing of market entry is one of the most important strategic decisions a firm must make, but its decision process becomes convoluted with information and payoff spillovers. The threat of competition pushes firms to enter earlier to preempt their rivals while the possibility of learning make them cautiously wait for others to take action. This combination amounts to a new class of timing games where first-mover advantage first emerges as in preemption games but second-mover advantage later prevails as in wars of attrition. Our model identifies under what conditions a firm becomes a pioneer, early follower or late entrant and shows that the timing of entry is excessively early (late) when there emerges a late entrant (early follower). We also argue that consumer inertia is often efficiency-enhancing in this environment, highlighting an elusive link between static market competition and dynamic entry competition.
DC.format	81253
citation_title	Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition
citation_author	Chen, Chia-Hui
	Ishida, Junichiro
	Mukherjee, Arijit
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	English
citation_date	2021-04
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	1132
citation_firstpage	1
citation_lastpage	47
citation_public_url	https://hdl.handle.net/11094/81253
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2021/DP1132.pdf

Pioneer, Early Follower or Late Entrant: Entry Dynamics with Learning and Market Competition

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