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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why may First-Mover actually Disadvantage the Cheater?

Author: eric_galvao



Answer:

-The Payoff Matrix may work Against the Firm that is attempting to Move First. Say the 'First Mover' can get a Huge Profit -If they Overestimate Demand, they risk making Huge Losses and risk Collapsing -Rivals can use the Technology the First Mover had Researched and Developed for a Lot Less.


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