Do new competitors, new customers, new suppliers,... sustain, destroy or create sustained protability?
نویسندگان
چکیده
A new player, e.g., an entrant, joining an existing game generally allows more value to be created, but also creates new alternatives for existing players. Greater value expands the range of equilibrium appropriation levels for an existing player, in particular, lowering the minimum equilibrium appropriation. The emergence of new alternatives has the opposite e¤ect. We say a player has competitive advantage if the players minimum equilibrium appropriation is strictly greater than the players outside alternative. That is, the forces of competition alone, as embodied in the conditions de ning equilibrium, su¢ ce to guarantee a player appropriates more than the best alternative to being in the game, i.e., a sustainable performance advantage. When a player has competitive advantage pre-entry, but not post-entry, we say entry destroys competitive advantage; likewise for creating and sustaining competitive advantage. Our results provide complete characterizations (i.e., if and only if statements) of the features of a game that cause the addition of a new player to destroy, create or sustain competitive advantage in a general coalitional game. These results are of importance for strategy issues since as argued by proponents of value-based business strategy, e.g., Brandenburger and Stuart (1996) many of the economic interactions of interest in strategy are well-described as coalitional games. Comments from seminars at Emory, Yale and HBS are greatly appreciated.
منابع مشابه
Do new competitors , new customers , new suppliers , . . . sustain , destroy or create competitive advantage ?
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