Creating First-Mover Advantages in Nature-Based Recreational Goods

Abstract

Most nature-based recreational goods have traditionally been viewed as positive externalities of forestry and other land uses. They have been characterised by low degrees of excludability and rivalry and have therefore mainly been public goods. Due to increased rivalry among various user groups as well as an increasing demand for new recreational experiences, markets for nature-based recreational goods and services are gradually emerging. Despite the slow market development it is argued that nature-based recreational goods can be connected with substantial first-mover advantages. This paper explores the possibilities for using theory on first-mover advantages combined with characteristics of recreational goods to find the main areas of focus and the related strategies by which to gain first-mover advantages. The characteristics of recreational goods are analysed as well as the relevant first-mover advantages from the literature. Four examples of nature-based recreational goods are provided and used to analyse the scope for creating firstmover advantages according to the characteristics of each type of good. The analysis shows that particularly buyer switching costs and targeting the right buyers can create considerable first-mover advantages. Furthermore, non-subtractable goods and goods which can attract organised buyers can be connected with greater first-mover advantages. Combining knowledge on recreational goods and first-mover advantages can support the development of markets for nature-based recreational goods and increase returns on investments in this field.

Defining Peer-to-peer Learning – from an Old ‘Art of Practice’ to a New Mode of Forest Owner Extension?

“…For example, living away from the forest property might indicate weaker motivation towards its upkeep (Rickenbach and Kittredge 2009). At the same time, societal requirements are increasing regarding the use of renewable natural resources from private lands in the forms of bioenergy, biodiversity and nature tourism demands (Boon, Broch, and Meilby 2010;Vedel 2010;Verkerk et al 2011).…”

Forest owners’ social networks – possibilities to enhance knowledge exchange

“…In addition, there is increasing demand for woody biomass to produce bioenergy (Shivan and Mehmood 2010). Moreover, some experiments to compensate nature-based recreational goods and services exist (Vedel 2010). Due to new uses of forests it can be supposed that owners need to have more diverse contacts to help them make their forest-related decisions.…”

Enhancing informal interaction and knowledge co-construction among forest owners

“…In Finland, forest owners hold 60% of the forest land (Leppänen and Sevola 2014), whilst in the US the corresponding share is 55% (Butler and Ma 2011). Besides the traditional use of forests as a source of raw material for the pulp and paper industry, various additional benefits that forests produce such as nature based tourism, biodiversity protection or bioenergy have been widely recognised (Hugosson and Ingemarson 2004;Shivan and Mehmood 2010;Vedel 2010). For forest owners, there are plenty of possibilities to use and benefit from their forests according to their interests and values.…”