Early mover advantages: An empirical analysis of European mobile phone markets

Govert Bijwaard, Maarten Janssen and Emiel Maasland

Telecommunications Policy, vol. 32, issue 3-4, 246-261

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.

Keywords: Early; mover; advantages; Mobile; telecommunication (search for similar items in EconPapers)
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