Bounded rationality in a three-player simultaneous market entry game

Abstract

Although simultaneous market entry has not been addressed in marketing, management, and entrepreneurship, there are good reasons why researchers and practitioners in these fields should be interested in this phenomenon. There is evidence that the time interval between pioneer and followers is diminishing in many markets, and there are real decision situations that may even be approximated by a "simultaneous" entry into a market. This article reports on properties equilibrium of a modified simultaneous market entry game for the case of three players. The empirical background of starting conditions' effects and formalizing them are discussed. Basic properties of the normative simultaneous market entry game, the modified game and the effects of starting points variations on equilibria are also discussed. An outline of the next steps in our research is given.