The Evolution of Markets Under Entry and Standards Regulation - The Case of Global Mobile Telecommunications

Harald Gruber and Frank Verboven

No 2440, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We analyse the effects of government policies, such as entry regulation and standard setting, on the evolution of an industry, the global mobile telecommunications markets during 1981-1997. Among other results, we find that countries that issue first licenses at later dates converge rather slowly and only partially, compared to early-moving countries. We find that introducing competition has a strong immediate impact on the diffusion rate, but a rather weak impact afterwards. Sequential entry is preceded by pre-emptive behaviour. These findings are consistent with the presence of consumer switching costs. Concerning standards, we find that setting a standard has a significant positive impact on diffusion for the analogue technology, but not for the digital technology. This suggests that the network advantages from having a single standard are offset by the benefits derived from the battle for developing more efficient digital systems.

Keywords: Capacity constraints; Consumer switching costs; Entry regulation; Mobile telecommunications; Network externalities; Pre-emption; Standards and competing systems; Technology diffusion (search for similar items in EconPapers)
JEL-codes: L10 L86 O30 (search for similar items in EconPapers)
Date: 2000-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://cepr.org/publications/DP2440 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: The evolution of markets under entry and standards regulation -- the case of global mobile telecommunications (2001)
Working Paper: The evolution of markets under entry and standards regulation - The case of a global mobile telecommunications
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:cpr:ceprdp:2440

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP2440
orders@cepr.org

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by (repec@cepr.org).