Vertical structure flips first-mover advantage, leading to higher profits.
This study looks at how being the first or second mover in a vertical market can affect a company's profits. The researchers found that in this type of market, the order in which companies make decisions can change who has an advantage. In some cases, the company that moves first makes more money, while in other cases, the company that moves second does better. This can lead to the first company setting higher prices than its competitors. Overall, the order in which companies act in a vertical market can have a big impact on their success.