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Time-cost substitutability, earlycutting threat, and innovation timing

Rong-Kuan Wang and Die Hu

Economics Letters, 2017, vol. 156, issue C, 88-91

Abstract: With time-cost substitutability, a potential imitator could threat to “earlycut” the innovator by increasing experimental intensity. The earlycutting threat or uncertainty about the potential imitator’s experimental cost advantage usually drives down the new product’s quality but advances its launching date.

Keywords: Innovation timing; Quality development; Time-cost substitutability; Experimental intensity; Earlycutting (search for similar items in EconPapers)
JEL-codes: O31 O33 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:ecolet:v:156:y:2017:i:c:p:88-91