First Mover Advantages and Market Making Expenditures in Emerging Markets: A Conceptual Exploration
نویسنده
چکیده
This exploratory discussion introduces the concept of market making expenditures – the expenditures pioneering firms entering emerging markets need to make to achieve market development. They differ from the idea of pioneering costs in that market making expenditures can take the form of investment not simply cost, they arise from underdevelopment of markets rather than environmental uncertainty, and are discretionary for the investing firm. We define market making expenditures, explore the different types of expenditure, and examine strategies for maximizing the appropriability of market making investments. The implications for further research and refinement of the concept are also explored.
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