Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86366
Authors: 
Bijwaard, Govert E.
Janssen, Maarten C.W.
Maasland, Emiel
Year of Publication: 
2005
Series/Report no.: 
Tinbergen Institute Discussion Paper 05-007/1
Abstract: 
This paper analyzes empirically whether and if so to what extent later entrants in the European mobile telephony industry have a disadvantage vis-à-vis incumbents and early mover entrants. To analyze this question a dynamic model of market share development and a series of static models are considered. There is clear evidence of early mover advantage, mainly caused by the influence of the penetration rate: it pays to enter when still few people have acquired a mobile telephone. Another important determining factor is the Herfindahl–Hirschman Index at the moment of entry: it is significantly easier to enter a highly concentrated industry. Finally, there are important differences between countries, possibly indicating the relative strength of the national regulators.
Subjects: 
Telecommunications
Entry
First-Mover Advantage
JEL: 
L51
L96
Document Type: 
Working Paper

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