Excessive(?) Entry of National Telecom Networks, 1990-2001

Christiaan Hogendorn ()

No 2006-001, Wesleyan Economics Working Papers from Wesleyan University, Department of Economics

Abstract: We document entry and capacity expansion in US long-distance fiber-optic networks before and during the “telecom boom.” We disentangle the many swaps and leases between networks in order to measure owned route miles versus route miles shared with other carriers. Entry appears much more moderate when these shared miles are not counted. Strategic behavior can lead to excessive entry, and we find evidence of such behavior regarding total miles (including swaps and leases) but not regarding owned miles. We conclude that entry was excessive only with regard to swaps and leases, but not with regard to the physical building of the networks.

Keywords: telecommunications; investment; preemption (search for similar items in EconPapers)
JEL-codes: L11 L13 L96 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2006-01
New Economics Papers: this item is included in nep-bec, nep-com, nep-ind and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.wesleyan.edu/pdf/chogendorn/2006001_hogendorn.pdf (application/pdf)

Related works:
Working Paper: Excessive(?) Entry of National Telecom Networks, 1990-2001 (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wes:weswpa:2006-001

Access Statistics for this paper

More papers in Wesleyan Economics Working Papers from Wesleyan University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Manolis Kaparakis ().