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

Florian Lindner ()

Working Papers from Faculty of Economics and Statistics, Universität Innsbruck

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.

Keywords: Market entry game; Time pressure; Level-k reasoning; Risk; Competitiveness; Experiment (search for similar items in EconPapers)
JEL-codes: C72 C91 D81 (search for similar items in EconPapers)
Pages: 25
Date: 2013-07
New Economics Papers: this item is included in nep-bec, nep-cdm, nep-com, nep-exp, nep-gth and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www2.uibk.ac.at/downloads/c4041030/wpaper/2013-19.pdf (application/pdf)

Related works:
Journal Article: Decision time and steps of reasoning in a competitive market entry game (2014)
Working Paper: Decision time and steps of reasoning in a competitive market entry game (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2013-19

Access Statistics for this paper

More papers in Working Papers from Faculty of Economics and Statistics, Universität Innsbruck Contact information at EDIRC.
Bibliographic data for series maintained by Judith Courian ().