Question

The textbook discusses two different kinds of isolating mechanisms: impediments to imitation (denote this IMI) and early mover advantage (denote this EMA). According to the textbook, each item that is listed below is an isolating mechanism. With each item, indicate (according to the textbook) whether each item would fall under the heading of impediment to imitation (IMI) or early mover advantage (EMA).

Superior access to customers is listed under
(EMA, IMI).

Network effects is listed under
(EMA, IMI).

Economies of scale is listed under
(EMA, IMI).

Legal restrictions is listed under
(EMA, IMI).

Buyer switching costs is listed under
(EMA, IMI).

Answer 1

QUESTION :

Whether following Items would fall under the heading of impediment to imitation (IMI) or early mover advantage (EMA)

ANSWER :

1)Superior access to customers

Superior access to customers would fall under the heading impediment to imitation (IMI)

2) Network Effects

Network effects would fall under the heading early mover advantage (EMA)

3) Economies of scale

Economies of scale would fall under the heading of impediment to imitation (IMI)

4) Legal restrictions

Legal restrictions would fall under the heading of impediment to imitation (IMI)

5) Buyer switching costs

Buyer switching costs would fall under the heading of early mover advantage (EMA)