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Factors influencing the degree of competition in the telecom industry

Author

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  • Stanimir Minov

Abstract

The aim of this research is to identify which of Porter’s factors used to determine the degree of competition in an industry are also relevant to the sector of telecom. We use data from 30 European telecom markets to find empirical evidence for the validity of the factors that Porter defines in his five forces model – number and size of competitors, industry growth, degree of product differentiation, market exit barriers, capacity, switching costs, fixed costs, brand loyalty. We propose a better metric for judging the likely degree of competition in any given telecom market.

Suggested Citation

  • Stanimir Minov, 2014. "Factors influencing the degree of competition in the telecom industry," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 57-69,70-80.
  • Handle: RePEc:bas:econth:y:2014:i:3:p:57-69,70-80
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    References listed on IDEAS

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    1. Jan Boone, 2008. "A New Way to Measure Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1245-1261, August.
    2. Alexander Schiersch & Jens Schmidt-Ehmcke, 2010. "Empiricism Meets Theory: Is the Boone-Indicator Applicable?," Discussion Papers of DIW Berlin 1030, DIW Berlin, German Institute for Economic Research.
    3. Jan Boone, 2008. "A New Way to Measure Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1245-1261, August.
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    Cited by:

    1. Megan Emfosi Meena & Jiaying Geng, 2022. "Dynamic Competition in Telecommunications: A Systematic Literature Review," SAGE Open, , vol. 12(2), pages 21582440221, April.

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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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