Competition in a Network Industry: The Telephone Industry, 1894–1910

David Gabel

The Journal of Economic History, 1994, vol. 54, issue 3, 543-572

Abstract: The re-emergence of AT&T as the dominant firm in the telephone industry resulted from its adopting a predatory response to entrants. AT&T's strategy was effective because government regulations and capital market imperfections provided the incumbent with a first-mover advantage that prevented challengers from entering simultaneously in all markets.

Date: 1994
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