IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/2010s-31.html
   My bibliography  Save this paper

Analyzing Entry Strategies in the Canadian Wireless Industry: The Case of the Discount Market

Author

Listed:
  • Sandy Mokbel

Abstract

This study examines entry strategies in the Canadian wireless discount market. Analysis was mainly focused on the incumbents' strategic choices when faced with the threat of sequential entry. The main model used is Fudenberg and Tirole's taxonomy of business strategies that is studied in the context of multimarket contact and when entry deterrence might be considered as a public good. The core of the analysis is done with two interconnected two stage games. It is argued that Fido, Solo and Virgin adopted a Puppy Dog strategy to face Koodo's entry, then might have aligned with their new competitor and switched to a Top Dog attitude when faced with the threat of a second round of market entries. Cette étude examine les stratégies d'entrée sur le marché canadien des télécommunications sans-fil à escompte. L'analyse porte principalement sur les choix stratégiques des entreprises établies qui font face à des menaces d'entrée séquentielles sur le marché. Le modèle, essentiellement basé sur la taxonomie des stratégies de gestion de Fudenberg et Tirole, est étudié dans un contexte de firmes ayant des contacts sur plusieurs marchés et en supposant que la dissuasion à l'entrée pourrait avoir les mêmes caractéristiques qu'un bien public. L'analyse se base sur deux jeux à deux phases interconnectés. Ce modèle supposerait alors que Fido, Solo et Virgin auraient adopté la stratégie d'un Gentil Chiot en préparation à l'entrée de Koodo, et se seraient ensuite alignés avec leur nouveau concurrent en adoptant ce qui semblerait être une attitude de Chien Méchant lorsque soumis à des menaces d'une nouvelle vague d'entrées.

Suggested Citation

  • Sandy Mokbel, 2010. "Analyzing Entry Strategies in the Canadian Wireless Industry: The Case of the Discount Market," CIRANO Working Papers 2010s-31, CIRANO.
  • Handle: RePEc:cir:cirwor:2010s-31
    as

    Download full text from publisher

    File URL: http://www.cirano.qc.ca/files/publications/2010s-31.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ng, S. & Pinkse, J., 1995. "Nonparametric-two-Step Estimation of Unknown Regression Functions when the Regressors and the Regression Error Are not Independent," Cahiers de recherche 9551, Universite de Montreal, Departement de sciences economiques.
    2. D. W. K. Andrews, 2003. "End-of-Sample Instability Tests," Econometrica, Econometric Society, pages 1661-1694.
    3. Robert J. Gordon, 1998. "Foundations of the Goldilocks Economy: Supply Shocks and the Time-Varying NAIRU," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, pages 297-346.
    4. Hansen, Bruce E, 1997. "Approximate Asymptotic P Values for Structural-Change Tests," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(1), pages 60-67, January.
    5. Hansen, Bruce E., 2000. "Testing for structural change in conditional models," Journal of Econometrics, Elsevier, pages 93-115.
    6. MartinNeil Baily & Robert Z. Lawrence, 2001. "Do We Have a New E-conomy?," American Economic Review, American Economic Association, pages 308-312.
    7. Andrews, Donald W K & Ploberger, Werner, 1994. "Optimal Tests When a Nuisance Parameter Is Present Only under the Alternative," Econometrica, Econometric Society, pages 1383-1414.
    8. Carolyn Fischer & Cees Withagen & Michael Toman, 2004. "Optimal Investment in Clean Production Capacity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, pages 325-345.
    9. Claudio Borio & William English & Andrew Filardo, 2003. "A tale of two perspectives: old or new challenges for monetary policy?," BIS Papers chapters,in: Bank for International Settlements (ed.), Monetary policy in a changing environment, volume 19, pages 1-59 Bank for International Settlements.
    10. James A. Kahn & Robert W. Rich, 2003. "Tracking the new economy: using growth theory to detect changes in trend productivity," Proceedings, Federal Reserve Bank of San Francisco.
    11. Kahn, James A. & Rich, Robert W., 2007. "Tracking the new economy: Using growth theory to detect changes in trend productivity," Journal of Monetary Economics, Elsevier, pages 1670-1701.
    12. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2002. "Projecting productivity growth: lessons from the U.S. growth resurgence," Economic Review, Federal Reserve Bank of Atlanta, pages 1-13.
    13. Georg Erber & Ulrich Fritsche, 2005. "Estimating and Forecasting Aggregate Productivity Growth Trends in the US and Germany," Discussion Papers of DIW Berlin 471, DIW Berlin, German Institute for Economic Research.
    14. K.J. Martijn Cremers & Joost Driessen & Pascal Maenhout, 2008. "Explaining the Level of Credit Spreads: Option-Implied Jump Risk Premia in a Firm Value Model," Review of Financial Studies, Society for Financial Studies, vol. 21(5), pages 2209-2242, September.
    15. Andrews, Donald W K, 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Econometrica, Econometric Society, pages 821-856.
    16. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, pages 47-78.
    17. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2006. "Projecting Productivity Growth: Lessons from the US Growth Resurgence," Chapters,in: The New Economy and Beyond, chapter 2 Edward Elgar Publishing.
    18. Andrew J. Filardo, 1995. "Has the productivity trend steepened in the 1990s?," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 41-59.
    19. Robert J. Gordon, 2003. "Exploding Productivity Growth: Context, Causes, and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, pages 207-298.
    20. Andrew Sharpe, 2004. "Recent Productivity Developments in Canada and the United States: Productivity Growth Deceleration versus Acceleration," International Productivity Monitor, Centre for the Study of Living Standards, pages 16-26.
    21. Andrews, Donald W K, 1993. "Tests for Parameter Instability and Structural Change with Unknown Change Point," Econometrica, Econometric Society, pages 821-856.
    22. Belorgey, Nicolas & Lecat, Remy & Maury, Tristan-Pierre, 2006. "Determinants of productivity per employee: An empirical estimation using panel data," Economics Letters, Elsevier, pages 153-157.
    23. Allan Crawford, 2002. "Trends in Productivity Growth in Canada," Bank of Canada Review, Bank of Canada, vol. 2002(Spring), pages 19-32.
    24. Benoît Robidoux & Bing-Sun Wong, 2003. "Has Trend Productivity Growth Increased in Canada?," International Productivity Monitor, Centre for the Study of Living Standards, pages 47-55.
    25. MartinNeil Baily & Robert Z. Lawrence, 2001. "Do We Have a New E-conomy?," American Economic Review, American Economic Association, pages 308-312.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    market strategy; game theory; telecommunications; industrial organization; stratégie de marché; théorie des jeux; télécommunications; organisation industrielle;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirwor:2010s-31. 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: (Webmaster). General contact details of provider: http://edirc.repec.org/data/ciranca.html .

    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.

    We have no references for this item. You can help adding them by using 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.