Simonsohn, Uri2023-05-222023-05-222010-07-012018-05-29https://repository.upenn.edu/handle/20.500.14332/39484Do firms neglect competition when making entry decisions? This paper addresses this question analyzing the time of day at which eBay sellers set their auctions to end. Consistent with competition neglect, it is found that (i) a disproportionate share of auctions end during peak bidding hours, (ii) such hours exhibit lower selling rates and prices, and (iii) peak listing is more prevalent among sellers likely to have chosen ending time strategically, suggesting disproportionate entry is a mistake driven by bounded rationality rather than mindlessness. The results highlight the importance for marketing researchers of assessing rather than assuming the rationality of firm behavior.Originally published in Management Science © 2010 INFORMS This is a pre-publication version. The final version is available at http://dx.doi.org/10.1287/mnsc.1100.1180market entrymarketingcompetitive strategybehavioral economicsAdvertising and Promotion ManagementBusinessBusiness Administration, Management, and OperationsBusiness IntelligenceE-CommerceMarketingOrganizational Behavior and TheorySales and MerchandisingArticle