First-mover advantage and the speed of competitive entry, 1887-1986

    Authors

    R. Agarwal;M. Gort

    Abbreviated Journal Title

    J. Law Econ.

    Keywords

    PATH DEPENDENCE; PRODUCT; INDUSTRY; Economics; Law

    Abstract

    This paper examines historical changes in the duration of the interval between the commercial introduction of a new product and the time when entry by later competitors begins. A priori reasons are examined why the duration of this interval in the U.S. economy may either expand or contract. Data for 46 major product innovations, however, show a systematic tendency for the interval identified above to contract over the last century. The average time span was almost 33 years at the rum of the century and has declined to 3.4 years for innovations in 1967-86. Empirical evidence suggests this change resulted largely from a lowering of absolute cost advantages of first movers through easier transfer of knowledge and skills across firms and was also facilitated by the growth of markets.

    Journal Title

    Journal of Law & Economics

    Volume

    44

    Issue/Number

    1

    Publication Date

    1-1-2001

    Document Type

    Article

    Language

    English

    First Page

    161

    Last Page

    177

    WOS Identifier

    WOS:000168708300006

    ISSN

    0022-2186

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