Innovation and Coordination - "Are Product Preannouncements Anticompetitive?"

Completed Project

Department

Competition and Consumers

Project Management

Christian Wey

Project Period

October 1, 2006 - June 29, 2009

Commissioned by

VolkswagenStiftung

In Cooperation With

Humboldt-Universität zu Berlin, Institute of Entrepreneurial Studies and Innovation Management, Christian Schade; Columbia University, Department of Psychology, David Krantz; University of Pennsylvania, Wharton School, Risk Management and Decision Processes Center, Howard Kunreuther

The international project held together by the management specialists, economists, psychologists and statisticians is aimed at the development of the basic theoretical concepts, which would be helpful in the analysis of the process of technological innovations and the market entry based on these innovations. There are three modules in the project, which concentrate on the problems of the coordination between the market participants. The other research direction is to compare the rational behaviour of the players with the actual behaviour in the laboratory experiments. For this one has to use the normative game theory analysis, but also the ‘behavioural game theory’, which takes into account the bounded rationality of people. This analysis will be a contribution to the existing innovation theory.

Module 3 of the project is aimed at the analysis of the coordination problem, which consumers face when 2 standards of the product are available at the market. We also analyse the influence of product pre-announcement on the coordination.

DIW Team