As GMB and VolgaBus compete,GMB selects a new and superior brake technology.VolgaBus prefers a different brake technology,but feels trapped into selecting the same one used by GMB.This is due to
A)adverse selection.
B)first-mover advantage.
C)secure strategy.
D)extension form.

Question

Quizplus · Accepted Answer

This scenario is an example of first-mover advantage, where GMB, by being the first to adopt a new and superior brake technology, influences the market and competitors' choices, leading VolgaBus to feel compelled to adopt the same technology despite preferring a different one.

As GMB and VolgaBus Compete,GMB Selects a New and Superior