Perception of competition

10 november 2004

We integrate in this study a cognitive notion of competition in the traditional literature on competition, i.e. industrial organisation and game theory. In industrial organisation literature and game theory, an impressive number of models have been developed using different assumptions of context variables such as the number of firms, the shape of the demand curve, decisionmaking order and cost (a)symmetries. The models have resulted in valuable insights as to the possible outcomes of the competition process. However, most models are based on rational, profit-maximizing firms thereby disregarding the psychological processes that lie behind competitive decisions. For instance, decisionmakers are not fully informed and they use simplifying routines to process (parts of) all available information. By focussing on more behavioural aspects of decisionmaking and in particular on cognitive psychology insights, the notion of competition can be expanded.

Voor inlichtingen: 079 343 06 04

Perception of competition : A measurement of competition from the perspective of the firm

09 november 2004

In this report, we study competition from a cognitive psychology, marketing and strategic management perspective and hope to contribute to the notion of competition and competitive processes. In addition, we propose a new method to measure competition that is based on these more psychological insights.  

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Auteur(s): dr. R.G.M. Kemp, Jurgen Hanemaaijer


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