The evolution of markets under entry and standards regulation -- the case of global mobile telecommunications
AbstractWe analyze the effects of government policies on the evolution of an industry, the global mobile telecommunications market. We find a relatively slow diffusion convergence between countries. This follows partly from regulatory delay in issuing first licenses, yet persisting initial cross-country differences also contribute to a lack of convergence. Introducing competition has a strong immediate impact on diffusion, but a weak impact afterwards; sequential entry is preceded by pre-emptive behavior by incumbents. This is consistent with the presence of consumer switching costs. Setting a single technological standard accelerates the diffusion of analogue technologies considerably; for digital technologies it is too early to draw reliable conclusions, yet the available evidence suggests that setting single standards has similar beneficial effects.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Industrial Organization.
Volume (Year): 19 (2001)
Issue (Month): 7 (July)
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Web page: http://www.elsevier.com/locate/inca/505551
Other versions of this item:
- Gruber, H & Verboven, Frank, 2001. "The evolution of markets under entry and standards regulation - the case of global mobile telecommunication," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/223770, Katholieke Universiteit Leuven.
- Gruber H. & Verboven F., 1999. "The evolution of markets under entry and standards regulation: the case of a global mobile telecommunications," Working Papers 1999038, University of Antwerp, Faculty of Applied Economics.
- Gruber, Harald & Verboven, Frank, 2000. "The Evolution of Markets Under Entry and Standards Regulation - The Case of Global Mobile Telecommunications," CEPR Discussion Papers 2440, C.E.P.R. Discussion Papers.
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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- Valletti, Tommaso M & Cave, Martin, 1998. "Competition in UK mobile communications," Telecommunications Policy, Elsevier, vol. 22(2), pages 109-131, March.
- Geroski, Paul A, 1999.
"Models of Technology Diffusion,"
CEPR Discussion Papers
2146, C.E.P.R. Discussion Papers.
- Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 1-54.
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