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

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  • Bijwaard, Govert E.
  • Janssen, Maarten C.W.
  • Maasland, Emiel

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.

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Bibliographic Info

Article provided by Elsevier in its journal Telecommunications Policy.

Volume (Year): 32 ()
Issue (Month): 3-4 (April)
Pages: 246-261

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Handle: RePEc:eee:telpol:v:32:y::i:3-4:p:246-261

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Related research

Keywords: Early mover advantages Mobile telecommunication;

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Cited by:
  1. Muck, Johannes & Heimeshoff, Ulrich, 2012. "First mover advantages in mobile telecommunications: Evidence from OECD countries," DICE Discussion Papers 71, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Tözer, Ayhan, 2010. "Assessment of First Comer Advantages and Network Effects; the Case of Turkish GSM Market," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 35, International Telecommunications Society (ITS).
  3. Steffen Hoernig, 2008. "Market Penetration and Late Entry in Mobile Telephony," Working Papers 08-38, NET Institute, revised Oct 2008.

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