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Competition in a Network Industry: The Telephone Industry, 1894–1910

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  • Gabel, David

Abstract

The re-emergence of AT&T as the dominant firm in the telephone industry resulted from its adopting a predatory response to entrants. AT&T's strategy was effective because government regulations and capital market imperfections provided the incumbent with a first-mover advantage that prevented challengers from entering simultaneously in all markets.

Suggested Citation

  • Gabel, David, 1994. "Competition in a Network Industry: The Telephone Industry, 1894–1910," The Journal of Economic History, Cambridge University Press, vol. 54(3), pages 543-572, September.
  • Handle: RePEc:cup:jechis:v:54:y:1994:i:03:p:543-572_01
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    Cited by:

    1. James Dalton & Louis Esposito, 2011. "Standard Oil and Predatory Pricing: Myth Paralleling Fact," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(3), pages 245-266, May.
    2. Timothy Simcoe & Jeremy Watson, 2019. "Forking, Fragmentation, and Splintering," Strategy Science, INFORMS, vol. 4(4), pages 283-297, December.
    3. Bryan Caplan & Edward Stringham, 2003. "Networks, Law, and the Paradox of Cooperation," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 16(4), pages 309-326, December.
    4. Mark A. Jamison, 2011. "Liberalization and Regulation of Telecoms, Electricity, and Gas in the United States," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 21, Edward Elgar Publishing.
    5. Roy Radner & Ami Radunskaya & Arun Sundararajan, 2010. "Dynamic Pricing of Network Goods with Boundedly Rational Consumers," Working Papers 10-13, New York University, Leonard N. Stern School of Business, Department of Economics.

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