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Positioning strategies in the case of oligopolistic competition: The case of telecommunications industry in Senegal

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Author Info

  • Babacar Ndiaye

    (LARSES - Laboratoire d'Etude et de Recherche en Sciences Economiques et Sociales - Université de Ziguinchor)

  • Cheikh Thiaw

    ()
    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS])

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    Abstract

    Innovation is the major instigator in competitive industry. The competition for innovation is traditionally analyzed within the framework of deterministic and stochastic models (Reinganum, 1989). Boone (2001), Fethke and Birch (1982) have respectively analyzed the standard models of competitive strategies in a duopoly and oligopoly industry. By focusing our analysis on deterministic models that is, the models without technological uncertainty, this paper attempts to interpret the model of Boone (2001) in order to determine the choice of positioning in a context of cumulative innovation. Thus, taking into account the case of the telecommunications' sector in Senegal, we try to understand the motivations of the incumbent firm (called first mover) to implement cumulative innovation in order to maintain its position in spite of the investments of entering firms (called follower).

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    File URL: http://halshs.archives-ouvertes.fr/docs/00/86/45/56/PDF/Ndiaye_and_Thiaw_Original_.pdf
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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00864556.

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    Date of creation: 18 Aug 2011
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    Publication status: Published, African Journal of Business Management (Academic Journals), 2011, 5, 16, 6651-6656
    Handle: RePEc:hal:journl:halshs-00864556

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00864556
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    Related research

    Keywords: Innovation; competition; deterministic models; telecommunications industry; Oligopoly;

    References

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    1. Reinganum, Jennifer F., 1989. "The timing of innovation: Research, development, and diffusion," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 14, pages 849-908 Elsevier.
    2. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-93, June.
    3. Boone, Jan, 2001. "Intensity of competition and the incentive to innovate," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 705-726, April.
    4. J. David & Thierry Verdier, 1991. "La structure industrielle dans une course au brevet avec coûts fixes et coûts variables," Revue économique, Presses de Sciences-Po, vol. 0(6), pages 1111-1140.
    5. Stewart, Marion B, 1983. "Noncooperative Oligopoly and Preemptive Innovation without Winner-Take-All," The Quarterly Journal of Economics, MIT Press, vol. 98(4), pages 681-94, November.
    6. Kamien, Morton I & Schwartz, Nancy L, 1976. "On the Degree of Rivalry for Maximum Innovative Activity," The Quarterly Journal of Economics, MIT Press, vol. 90(2), pages 245-60, May.
    7. Richard A. Jensen, 2001. "Strategic Intrafirm Innovation Adoption and Diffusion," Southern Economic Journal, Southern Economic Association, vol. 68(1), pages 120-132, July.
    8. Kamien, Morton I & Schwartz, Nancy L, 1974. "Patent Life and R & D Rivalry," American Economic Review, American Economic Association, vol. 64(1), pages 183-87, March.
    9. Gary C. Fethke & John J. Birch, 1982. "Rivalry and the Timing of Innovation," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 272-279, Spring.
    10. Lee, Tom & Wilde, Louis L, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 429-36, March.
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