Keywords

Bertrand Oligopoly Market, entrepreneur, opportunity

Abstract

In this paper we develop a method to be able to recognize opportunity for a new entrant in a Bertrand Oligopoly market based upon industrial organization. We infer from the demand curves of competitors if opportunity for a new entrant exists and the necessary characteristics of the entrant that would make it successful in a given market. This provides a significant contribution to the field of entrepreneurship since it has struggled to find a bona fide way to define and identify opportunity. Most research on entrepreneurial opportunity has focused on the characteristics of the product being developed, e.g., what are the customer needs, do buyer compatible assets exist, is the product easily replicable, etc..., or on the personality traits of successful entrepreneurs such as locus of control, introvert/extrovert, and others. Currently there is no legitimate model to demonstrate when a market presents an opportunity for a new entrant and what this entrant must look like in order to be successful. In this paper, we expound a novel method for inferring from competitors' demand curves when entrepreneurial opportunity exists in a differentiated Bertrand oligopoly market and what industrial characteristics the entrant must have in order to compete successfully.

Description

The Library Student Research Grant program encourages outstanding student achievement in research, fosters information literacy, and stimulates original scholarship.