First mover advantages

Thus, even before the war, Du Pont had created first-mover advantages based on new technology and commercializing products from it. Du Pont, however, did not participate in the massive wartime projects to develop high-octane aviation fuel and synthetic rubber—projects that spawned com-... 

C oncentration First Mover Advantage Buyers Willingness to Switch... 

Under complete information, we may conclude from Proposition 2 that the bargaining process will end in one iteration when either the supplier or the buyer initiates the negotiation with the SPE offer, and the opponent would accept the offer. This is true since the SPE offer makes the opponent indifferent between accepting the current offer and waiting for future offers. One important issue remains is whether there exists a first-mover advantage in the game. We attend to this issue in the following proposition. 

As targeted offers can also be used as an instrument for sales, customers can be specifically targeted like with customer relationship management (CRM) tools. Experiments in this area have shown that the targeted offer mechanism results in higher prices compared to direct order or RfQs as buyer tend to often to be price takers (Hausen et al, 2006). In general the results implicated a first-mover advantage for either customers or suppliers who initiated a transaction. 

Hausen, T. and G. Schiefer, 2004. Experiments in the electronic market space First-mover-advantage, information asymmetry, and trust In G. Schiefer, P. Wagner, M. Morgenstern and U. Rickert (eds.). Reports of the 25. GIL Conference 8-10 September, Bonn, Germany. Lecture Notes in Informatics (LNI) - Proceedings, Series of the Gesellschaft fiir Informatik, vol. 49, pp. 245-248 (in German). 

The benefits of cost control can either improve directly the profit margin or reduce the consumer price. In the first case, it is assumed that the collaboration firms benefit from the first mover advantage and can set their prices above the marginal costs. However, their competitors will take over this innovative competitive advantage on a very short notice. In the second case, the increased demand by lower prices should contribute to better profits. Secondly, the two sources of cost control that will be taken into account require successfully applying the aforementioned factors that determine a successful collaboration. Otherwise the cost control can not be managed effectively. 

The relationship between environmental regulation and innovation has been addressed by Porter and van der Linde (1995). They suggest that governments can create market conditions that support first mover advantages. 

Lieberman, Marvin B., David B. Montgomery, 1988, First Mover Advantages, Strategic Management Journal 9 (Summer), 41-58. 

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