On the first-mover advantage, risk attitude and expected return in the competition of enterprises

first-mover advantage;  risk attitude;  expected benefits;  Game theory

Using the basic theory of game theory, according to the difference in returns generated by the successive actions in enterprise decision-making, it explains the profit advantage of the first mover in market competition, and the reason that the return of those with more information may not be high. Through the bargaining model in benefit distribution, the relationship between risk attitude and expected return in the constant and game was analyzed for three types of enterprises, such as risk appetite, risk neutrality and risk avoidance, and concluded that the two were positively correlated. Finally, it is important to obtain market information, but it is more important to put it into action as soon as possible and take risks in action, so as to obtain the desired return.