- The stronger the WTA-like situation, the stronger the influence of first-mover advantage.
- The advantage depends on the imitatorās cost of imitation and the predecessorās cost of research.
- If easily imitated, the imitator has an advantage
- Predecessors will no longer bear the cost of research
- So we grant monopoly rights through patents.
- When imitation and research costs are comparable
- It does not particularly serve as a barrier to entry.
- A set of monopoly and public disclosure through patents contributes to lowering the cost of imitation.
- A situation where advantage is even more advantageous.
- network effect
- Imitation alone does not produce the utility of network effects.
- Example: If a competitor launches a service with the exact same functionality as Twitter after Twitter becomes widely used, no one will move to the competitorās side.
- Some kind of differentiation can cause people to move.
- For example, it used to be possible to speak freely, but now that the rules have become stricter, it has become uncomfortable.
- [As we saw in Why do social networking sites rise and fall?
- For example, it used to be possible to speak freely, but now that the rules have become stricter, it has become uncomfortable.
- Imitation alone does not produce the utility of network effects.
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