Early Mover Advantages: Evidence From the Long‐Term Care Insurance Market |
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| Authors: | Michael K. McShane Larry A. Cox Yanling Ge |
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| Affiliation: | Michael K. McShane is at the College of Business and Public Administration, Old Dominion University. Larry A. Cox is at the School of Business Administration, University of Mississippi. Yanling Ge is at FNC, Inc. The authors can be connected via e‐mail: mmcshane@odu.edu, lcox@bus.olemiss.edu, and ymayer@fncinc.com, respectively. |
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| Abstract: | Researchers frequently question whether financial firms benefit by developing new products because barriers to entry common to other industries generally do not exist. Studies of early mover advantages for new financial products provide mixed evidence at best. We find evidence of early mover advantages in the relatively young market for long‐term care insurance (LTCI) using data that allow broad testing of financial performance. Product differentiation, individual lines exposure, firm size, and traditional health insurance experience also affect financial performance. |
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