A first mover advantage:
A) is a beneficial outcome that accrues to the player who exercises the first strategic choice in a sequential game
B) is a beneficial outcome that accrues to the player waits for the other to move first and gains the advantage of seeing the other companies mistakes
C) is a beneficial outcome that accrues to the player who exercises the first strategic choice in a simultaneous game
D) only occurs when there is 1 Nash equilibrium
E) none of the above

Question

Quizplus · Accepted Answer

A first mover advantage is the benefit that accrues to the player who exercises the first strategic choice in a sequential game. This player has the advantage of setting the terms of engagement, and the following player must respond to that player's moves. This advantage can come in the form of higher profits, market share, or other benefits.

A First Mover Advantage