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| Author: | Haan, M.A. |
| Title: | Vapoware as a means of entry deterrence |
| Journal: | Journal of Industrial Economics
2003 : JUN, VOL. 51:2, p. 345-358 |
| Index terms: | Computer industry New products Signaling |
| Freeterms: | Vapoware |
| Language: | eng |
| Abstract: | Companies in the computer industry are often accused of vapoware, the untruthful pre-announcement of a new version of their product. By claiming they have a new product, the critics argue, these companies try to deter potential entrants. This phenomenon is analysed in this paper. Vapoware is shown to be an equilibrium strategy in a signaling game in which the possibility to market a new product is private information. |
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