Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2005-01-05 Number: 05-007/1 Author-Name: Govert E. Bijwaard Author-Email: firstname.lastname@example.org Author-Name: Maarten C.W. Janssen Author-Name: Emiel Maasland Author-Workplace-Name: Erasmus School of Economics, Erasmus Universiteit Rotterdam Title: Early Mover Advantages 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.
This discussion paper has resulted in a publication in Telecommunications Policy. (2008, vol. 32, issues 3-4, 246-61. Classification-JEL: L51; L96 Keywords: Telecommunications; Entry; First-Mover Advantage File-Url: http://papers.tinbergen.nl/05007.pdf File-Format: application/pdf File-Size: 383479 bytes Handle: RePEc:tin:wpaper:20050007