Early Mover Advantages

Govert Bijwaard, Maarten C.W. Janssen and Emiel Maasland

No 05-007/1, Tinbergen Institute Discussion Papers from Tinbergen Institute

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.

This discussion paper has resulted in a publication in Telecommunications Policy . (2008, vol. 32, issues 3-4, 246-61.

Keywords: Telecommunications; Entry; First-Mover Advantage (search for similar items in EconPapers)
JEL-codes: L51 L96 (search for similar items in EconPapers)
Date: 2005-01-05
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20050007

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