Assessment of First Comer Advantages and Network Effects; the Case of Turkish GSM Market
First comer advantages and network effects are frequently stated as among the most important determinants of market structures and this is particularly relevant for network economies including telecommunications markets. Connected to this, regulatory tools such as number portability have frequently been used to reduce market imperfections resulting from these effects. Within this context, this paper aims to analyze the role of these factors in creating the current market structure of Turkish GSM sector. By examining relevant data such as development of market shares in a historical perspective and by making use of consumer surveys, it is concluded that the dominant operator has benefited from being first comer in the market and established a stable market share (power) due to network effects that are used by this firm deliberately to entrench its position especially in the form of switching costs, scale economies, brand image and tariff (on-net vs. off-net pricing) differentiation; however, it is also observed that introduction of number portability lead to reduction in switching costs, increasing market competition.
|Date of creation:||2010|
|Contact details of provider:|| Web page: http://www.itseurope.org/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Buehler, Stefan & Dewenter, Ralf & Haucap, Justus, 2006.
"Mobile number portability in Europe,"
Elsevier, vol. 30(7), pages 385-399, August.
- Buehler, Stefan & Dewenter, Ralf & Haucap, Justus, 2005. "Mobile Number Portability in Europe," Working Paper 41/2005, Helmut Schmidt University, Hamburg.
- Stefan Buehler & Justus Haucap, 2004. "Mobile Number Portability," Journal of Industry, Competition and Trade, Springer, vol. 4(3), pages 223-238, 09.
- Stefan Buehler & Justus Haucap, 2003. "Mobile Number Portability," SOI - Working Papers 0303, Socioeconomic Institute - University of Zurich, revised Jul 2003.
- Buehler, Stefan & Haucap, Justus, 2003. "Mobile Number Portability," Working Paper 17/2003, Helmut Schmidt University, Hamburg.
- Gans, Joshua S. & King, Stephen P., 2000. "Mobile network competition, customer ignorance and fixed-to-mobile call prices," Information Economics and Policy, Elsevier, vol. 12(4), pages 301-327, December.
- Gans, J.S. & King, S.P., 2000. "Mobile Network Competition, Customer Ignorance and Fixed-to-Mobile Call Prices," Department of Economics - Working Papers Series 734, The University of Melbourne.
- Daniel Birke & G. Swann, 2006. "Network effects and the choice of mobile phone operator," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 65-84, April.
- Daniel Birke & G. M. Peter Swann, 2005. "Social networks and choice of mobile phone operator," Occasional Papers 14, Industrial Economics Division.
- V. Brian Viard, 2007. "Do switching costs make markets more or less competitive? The case of 800-number portability," RAND Journal of Economics, RAND Corporation, vol. 38(1), pages 146-163, 03.
- Viard, V. Brian, 2005. "Do Switching Costs Make Markets More or Less Competitive? The Case of 800-Number Portability," Research Papers 1773r3, Stanford University, Graduate School of Business.
- 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.
- Franco Malerba & Uwe Cantner, 2006. "Innovation, industrial dynamics and structural transformation: Schumpeterian legacies," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 1-2, April. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:zbw:itse10:35. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.