Incumbent Repositioning with Decision Biases
dc.contributor.author | Wu, Brian | |
dc.contributor | Du, Xianjin | |
dc.contributor | Li, Meng | |
dc.date.accessioned | 2018-03-30T17:33:19Z | |
dc.date.available | 2018-03-30T17:33:19Z | |
dc.date.issued | 2018-02 | |
dc.identifier | 1379 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/142867 | |
dc.description.abstract | Incumbent firms often reposition themselves in response to competitive entrants, but when doing so the firm incurs repositioning costs. To model strategic interactions between incumbents and entrants this article proposes an approach that incorporates both repositioning costs and associated decision biases, which have been identified in the economics and strategy literatures as critical aspects of strategic change, but have been largely ignored in game-theoretic treatments at the strategy level. Using formal models, we analytically characterize the impacts of repositioning costs and biases on firms’ equilibrium strategies and profits. Including these costs and biases changes the nature of strategic dynamics as well as introduces new implications for strategic choice. | en_US |
dc.subject | Repositioning Costs | en_US |
dc.subject | Overestimation | en_US |
dc.subject | Underestimation | en_US |
dc.subject | Behavioral Strategy | en_US |
dc.subject | Awareness | en_US |
dc.subject.classification | Management and Organizations | en_US |
dc.subject.classification | Operations and Management Science | en_US |
dc.title | Incumbent Repositioning with Decision Biases | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbtoplevel | Business | |
dc.contributor.affiliationum | Ross School of Business | en_US |
dc.contributor.affiliationother | Hefei University of Technology - School of Business | en_US |
dc.contributor.affiliationother | Rutgers University | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | |
dc.description.bitstreamurl | https://deepblue.lib.umich.edu/bitstream/2027.42/142867/1/1379_Wu.pdf | |
dc.owningcollname | Business, Stephen M. Ross School of - Working Papers Series |
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