Nonresponse and delayed response to competitive moves: the roles of competitor dependence and action irreversibility

Article Abstract:

Competitive moves that are unchallenged or to which response is delayed are important weapons in a strategist's arsenal, so variables that discourage or delay responses are of great interest. Using a game theoretic framework, this study investigated the effects on dimensions of competitive response of competitor dependence on a market under attack and th irreversibility of an aggressor's move. The hypothesized relationships were tested with data on competitive moves by U.S. airlines. The results suggest that competitor dependence depresses chances of nonresponse and increases response delay and the likelihood that a responded will match a move. Action irreversibility generally has the opposite effect. In addition, the interaction of competitor dependence and action irreversibility is significant. Analyses of the performance implications of competitive exchange indicated that attackers and early responders gain market share at the expenses of late responders and nonresponders. (Reprinted by permission of publisher.)

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Speed, stealth, and selective attack: how small firms differ from large firms in competitive behavior

Article Abstract:

This study examined how small firms differ in their competitive behaviors from their large rivals in an industry and explored the implications of differences for performance. Data on competitive moves and countermoves exchanged by major U.S. airlines supported the predicted differences. The small airlines moreactively initiated competitive challenges and were speedy but low-key, even secretive, in executing their actions. They were also less likely and slower to respond when attacked and, contrary to expectations, their responses were more visible than those of their larger opponents. Deviations from group norms hurt performance for both the large and small firms. (Reprinted by permission of the publisher.)

Scheduled Airlines, Scheduled Air Transportation, Small business, Corporate size

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Action characteristics as predictors of competitive responses

Article Abstract:

The dynamics of competitive interaction are analyzed using a sample of competitive moves observed in the US airline industry. Action characteristics of competitive moves are discovered to be related to the time lag of competitor responses, as well as to the total number of competitor responses. This observation indicates that competitor responses are shaped by the characteristics of the competitive moves that originally evoked them.

Air transportation, scheduled

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