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First Come, First Served: An Analysis Of Pioneer And Follower Firms' Market And Nonmarket Actions In The European Mobile Telephone Industry

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Author Info
Maria Belen Usero ()
Zulima Fernandez ()
Abstract

This study examines the relationship between erosion of the first-mover’s market share and the differences in competitive behaviour of pioneer firms and followers. Particularly, we pay particular attention to market actions related to innovation, pricing and promotion, and to non-market actions related to judicial issues. The empirical study has been carried out with companies that are present in a dynamic context, such as the European mobile telephone industry. Our results show that when followers take more non-market actions than pioneers the negative effect on the firstentrant’s advantage is more significant. On the contrary, we have not found a significant impact of innovating and pricing actions.

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Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb054812.

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Date of creation: Jul 2005
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Handle: RePEc:cte:wbrepe:wb054812

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  1. David P. Baron, 1997. "Integrated Strategy and International Trade Disputes: The Kodak-Fujifilm Case," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 6(1), pages 291-346, 06. [Downloadable!] (restricted)
  2. Sanjai Bhagat & John Bizjak & Jeffrey L. Coles, 1998. "The Shareholder Wealth Implications of Corporate Lawsuits," Financial Management, Financial Management Association, vol. 27(4), Winter.
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