Investing in Complementary Inputs? Timing Matters More Than You Think!
The article explores how uncertainty and competition affect investment decisions in duopoly markets. It looks at when firms should upgrade complementary inputs, considering factors like market share and knowledge sharing. Surprisingly, the traditional idea of upgrading inputs simultaneously may not always be the best strategy, especially for the follower. The research shows that in certain scenarios, firms have complex and nonlinear criteria for making investment decisions.