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Title: Combating incumbency advantage of network effects: The role of entrant’s decisions and consumer preferences
Authors: Gupta, Agam
Mateen, Arqum
Sharma, Divya
Sarkar, Uttam Kumar
Cheruvil Thomas, Vinu
Keywords: Consumer heterogeneity
Late entry
Network effects
Product price
Product quality
Issue Date: 2019
Publisher: SCOPUS
Competition and Regulation in Network Industries
SAGE Publications Ltd
Series/Report no.: 20(1)
Abstract: This article studies the competitive dynamics between an incumbent and a late entrant in a market governed by network effects. Classifying markets based on decision criterion used by majority of consumers in a market, an analytical model for the likelihood of incumbent displacement in these markets is developed and corroborated using simulations. Using product quality offered and product price charged by the entrant as managerial levers, the impact of managerial decision-making on the expected market share of the entrant is discussed. Efficacy of seeding and delayed entry by the entrant in an attempt to perfect its product is also examined.
Description: Gupta, Agam, Indian Institute of Management Rohtak, India; Mateen, Arqum, Indian Institute of Management Kozhikode, India; Sharma, Divya, Indian Institute of Management Rohtak, India; Sarkar, Uttam Kumar, Indian Institute of Management Calcutta, India; Cheruvil Thomas, Vinu, Indian Institute of Management Tiruchirappalli, India
ISSN/ISBN - 17835917
DOI - 10.1177/1783591718823922
Appears in Collections:Management Information Systems

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