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|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.itseurope.org/|
References listed on IDEAS
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.:
- 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.
- Buehler, Stefan & Dewenter, Ralf & Haucap, Justus, 2005.
"Mobile Number Portability in Europe,"
41/2005, Helmut Schmidt University, Hamburg.
- 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.
- 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.
- Stefan Buehler & Justus Haucap, 2004.
"Mobile Number Portability,"
Journal of Industry, Competition and Trade,
Springer, vol. 4(3), pages 223-238, 09.
- 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.
- 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.
- Daniel Birke & G. M. Peter Swann, 2005. "Social networks and choice of mobile phone operator," Occasional Papers 14, Industrial Economics Division.
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 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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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.