Response to Competitive Entry: A Rationale for Delayed Defensive Reaction

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Ajay Kalra; Surendra Rajiv; Kannan Srinivasan;
  • Journal: Marketing Science,volume 17,issue 4,pages380-405
  • Related identifiers: doi: 10.1287/mksc.17.4.380
  • Subject: New Product Entry, Defensive Reaction, Quality Signaling, Price-quality Relationship, Signal Jamming, Asymmetric Information

Empirical studies examining responses to new product entries come to the puzzling conclusion that, in general, an incumbent reacts to a new entrant after a significant delay. Even easy-to-implement price cuts are observed after significant lag following entry. These fin... View more
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