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Catfish effect

💼 Business By CampusDown Wiki Editorial Team Last updated
The catfish effect is a metaphor that a strong competitor or stimulus makes incumbents more active and competitive.
Contents
  1. 1. Overview
  2. 2. Frequently asked questions
  3. 3. References

Overview

The term comes from an unverified anecdote that a catfish in a sardine tank keeps the sardines moving and alive. It is used for new market entrants or outside hires that spur incumbents. Research such as Aghion et al. (2005) finds an inverted-U relationship between competition and innovation, so too much pressure can backfire.

Frequently asked questions

Is it scientifically proven?
The anecdote is not; competition effects are studied separately.

References

  1. Porter, M. E. (1990). The Competitive Advantage of Nations. Free Press.
  2. Aghion, P., Bloom, N., Blundell, R., Griffith, R., & Howitt, P. (2005). Competition and innovation: An inverted-U relationship. Quarterly Journal of Economics, 120(2), 701–728.

Reports and materials that use this theory (Korean)

There are no materials dedicated to this theory yet, but you can search related reports in the CampusDown library (Korean).

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This article was last updated on October 24, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.