Marketing Papers

Document Type

Journal Article

Date of this Version

7-2010

Publication Source

Management Science

Volume

56

Issue

7

Start Page

1060

Last Page

1073

DOI

10.1287/mnsc.1100.1180

Abstract

Do firms neglect competition when making entry decisions? This paper addresses this question analyzing the time of day at which eBay sellers set their auctions to end. Consistent with competition neglect, it is found that (i) a disproportionate share of auctions end during peak bidding hours, (ii) such hours exhibit lower selling rates and prices, and (iii) peak listing is more prevalent among sellers likely to have chosen ending time strategically, suggesting disproportionate entry is a mistake driven by bounded rationality rather than mindlessness. The results highlight the importance for marketing researchers of assessing rather than assuming the rationality of firm behavior.

Copyright/Permission Statement

Originally published in Management Science © 2010 INFORMS

This is a pre-publication version. The final version is available at http://dx.doi.org/10.1287/mnsc.1100.1180

Keywords

market entry, marketing, competitive strategy, behavioral economics

Share

COinS
 

Date Posted: 15 June 2018

This document has been peer reviewed.