Work

Incumbency advantage and its value

Year: 2019

Type: article

Abstract: Markets with network effects are typically concentrated. The aim of this paper is to discuss some recent work on “incumbency advantage.” That is, the fact that firms already installed generate higher profits than entrants even if the latter offer identical or even better terms (in terms of price and quality) to consumers. In particular, we review recently known sources of the advantage and potential mitigating factors and point to a number of open issues.

Source: Journal of Economics & Management Strategy

DOI: 10.1111/jems.12307

Authors: Gary Biglaiser, Emilio Calvano, Jacques Crémer

Institutions: University of North Carolina at Chapel Hill, University of Bologna, Toulouse School of Economics

Language: English

Topic: Digital Platforms and Economics

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2907797614

FWCI: 10.77

Cites: 32

Cited by: 49

Related to: 10