Knowledge and Competition
This chapter combines looking at complexity with a consideration of value creation in knowledge-based industries. Our main conjecture is that indices (Jervis, 1985), or external truthful signals, can be used by the market to certify and rank the value of an actor’s product or services. Such path-dependent effects can lead to winner-take-all (Frank and Cook, 1995) results, where ranked actors gain a disproportionately large part of the market or value relative to unranked actors. This framework helps to illustrate the complexities of competition when our analysis integrates both markets and institutions.
KeywordsComplex Adaptive System Exchange Partner Knowledge Entanglement Complex Adaptive System Theory External Intermediary
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