New Trade Theory First Mover Advantage – Learning Curve Effects
Posted by mjmedlock on July 6, 2014 in international economics | ∞
New trade theory shows the importance of first mover advantage. Most people understand first mover advantage from the marketing and economies of scales points of view. However, the learning curve effects of being first are just as important. This is especially true if a firm or an economy have natural cost advantages, but are late to the party.
The video below explains the idea.
Nice and simple, easy to understand