Decision time and steps of reasoning in a competitive market entry game

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 122
Issue: 1
Pages: 7-11

Authors (1)

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Entry decisions in market entry games usually depend on the belief about how many others are entering the market, the belief about the own rank in a real effort task, and subjects’ risk preferences. In this paper I am able to replicate these basic results and examine two further dimensions: (i) the level of strategic sophistication, which has a positive impact on entry decisions, and (ii) the impact of time pressure, which has a (partly) negative influence on entry rates. Furthermore, when ranks are determined using a real effort task, differences in entry rates are explainable by higher competitiveness of males. Additionally, I show that individual characteristics are more important for the entry decision in more competitive environments.

Technical Details

RePEc Handle
repec:eee:ecolet:v:122:y:2014:i:1:p:7-11
Journal Field
General
Author Count
1
Added to Database
2026-01-25