Early entry can afford the first mover the opportunity to establish brand loyalty and technological leadership, both of which can increase its installed base. And if the market is characterized by increasing returns to adoption the first mover can garner two additional benefits from 1) moving up the learning curve before their competitors and 2) building an installed base that keeps increasing due to the self-reinforcing nature of network externality processes. Entering a market late, however, can be cheaper, easier, and more certain. The late mover can avoid much of the development expense and risk borne by the early movers, and can fine-tune the product to fit customer needs (which are now more certain) better.