What is a first mover advantage and what role does it play i

What is a first mover advantage and what role does it play in strategic trade theory?

Solution

A first-mover advantage is a benefit earned by the player able to make the initial move in a sequential move or multistage game.

Strategic intervention by governments may help domestic firms reap first-mover advantages in certain industries .

First mover firms, aided by governments, may have better odds at winning internationally.