Advanced Search
MyIDEAS: Login

Estimating the Option Value of Waiting: A Dynamic Entry Game of the U.S. Local Telephone Competition

Contents:

Author Info

Registered author(s):

    Abstract

    We estimate a dynamic oligopoly entry game in the early U.S. local telephone market. We observe the identities of potential entrants into local markets and therefore the waiting time of each potential entrant before it commits actual entry. To capture the feature of the data, we allow firms to be heterogeneous long-run players who have option value of waiting. We find that firm-level heterogeneity in entry costs plays a significant role in determining a firm's entry behavior into a local market. Our model can be used to conduct counterfactual simulations to understand the effectiveness of subsidy policies with different focuses.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.netinst.org/Fan_Xiao_10-14.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by NET Institute in its series Working Papers with number 10-14.

    as in new window
    Length: 24 pages
    Date of creation: Sep 2010
    Date of revision:
    Handle: RePEc:net:wpaper:1014

    Contact details of provider:
    Web page: http://www.NETinst.org/

    Related research

    Keywords: option value of waiting; entry; dynamic oligopoly entry game; telecommunications.;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:net:wpaper:1014. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicholas Economides).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.