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Early mover advantages: An empirical analysis of European mobile phone markets

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  • Bijwaard, Govert E.
  • Janssen, Maarten C.W.
  • Maasland, Emiel

Abstract

This paper analyzes empirically whether and if so to what extent later entrants in the European mobile telephony industry have a disadvantage vis-à-vis incumbents and early mover entrants. To analyze this question a dynamic model of market share development and a series of static models are considered. There is clear evidence of early mover advantage, mainly caused by the influence of the penetration rate: it pays to enter when still few people have acquired a mobile telephone. Another important determining factor is the Herfindahl-Hirschman Index at the moment of entry: it is significantly easier to enter a highly concentrated industry. Finally, there are important differences between countries, possibly indicating the relative strength of the national regulators.

Suggested Citation

  • Bijwaard, Govert E. & Janssen, Maarten C.W. & Maasland, Emiel, 0. "Early mover advantages: An empirical analysis of European mobile phone markets," Telecommunications Policy, Elsevier, vol. 32(3-4), pages 246-261, April.
    • Handle: RePEc:eee:telpol:v:32:y::i:3-4:p:246-261
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    Citations

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    Cited by:

    1. Usero Sánchez, Belén & Asimakopoulos, Grigorios, 2012. "Regulation and competition in the European mobile communications industry: An examination of the implementation of mobile number portability," Telecommunications Policy, Elsevier, vol. 36(3), pages 187-196.
    2. ., 2014. "Restructuring among mobile service providers: a ten-year perspective," Chapters, in: Mobile Telecommunications Networks, chapter 1, pages 1-25, Edward Elgar Publishing.
    3. de Mesnard, Louis, 2011. "More firms, more competition? The case of the fourth operator in France's mobile phone market," International Journal of Production Economics, Elsevier, vol. 130(2), pages 186-195, April.
    4. Escobar-Rodríguez, Tomás & Gago-Rodríguez, Susana, 2012. "“We were the first to support a major is innovation”. Research into the motivations of spanish pioneers in XBRL," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 91-108.
    5. Nakil Sung, 2014. "Declining first-mover advantage in mobile telecommunications markets," The Service Industries Journal, Taylor & Francis Journals, vol. 34(2), pages 89-102, January.
    6. Muck, Johannes & Heimeshoff, Ulrich, 2012. "First mover advantages in mobile telecommunications: Evidence from OECD countries," DICE Discussion Papers 71, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Asimakopoulos, Grigorios & Whalley, Jason, 2017. "Market leadership, technological progress and relative performance in the mobile telecommunications industry," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 57-67.
    8. Steffen Hoernig, 2008. "Market Penetration and Late Entry in Mobile Telephony," Working Papers 08-38, NET Institute, revised Oct 2008.
    9. Whalley, Jason & Curwen, Peter, 2012. "Incumbency and market share within European mobile telecommunication networks," Telecommunications Policy, Elsevier, vol. 36(3), pages 222-236.
    10. Curwen, Peter & Whalley, Jason, 2013. "Mapping worldwide mobile networks: Some problems and indicative solutions," Telecommunications Policy, Elsevier, vol. 37(11), pages 1150-1165.
    11. Tözer, Ayhan, 2010. "Assessment of First Comer Advantages and Network Effects; the Case of Turkish GSM Market," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 35, International Telecommunications Society (ITS).
    12. Queder, Fabian & Lehr, William & Haucap, Justus, 2020. "5G and Mobile Broadband Disruption," ITS Conference, Online Event 2020 224872, International Telecommunications Society (ITS).
    13. Fuentelsaz, Lucio & Garrido, Elisabet & González, Minerva, 2020. "Ownership in cross-border acquisitions and entry timing of the target firm," Journal of World Business, Elsevier, vol. 55(2).
    14. Jakopin, Nejc M. & Klein, Andreas, 2012. "First-mover and incumbency advantages in mobile telecommunications," Journal of Business Research, Elsevier, vol. 65(3), pages 362-370.
    15. Giovannetti, Emanuele & Sigloch, Sebastian, 2015. "An Internet periphery study: Network centrality and clustering for mobile access in Bhutan," Telecommunications Policy, Elsevier, vol. 39(7), pages 608-622.

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