Arbeitspapier

Early Mover Advantages

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.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. 05-007/1

Classification
Wirtschaft
Economics of Regulation
Telecommunications
Subject
Telecommunications
Entry
First-Mover Advantage
Mobilkommunikation
Markteintritt
Europa
Wettbewerbsvorteil

Event
Geistige Schöpfung
(who)
Bijwaard, Govert E.
Janssen, Maarten C.W.
Maasland, Emiel
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2005

Handle
Last update
10.03.2025, 11:45 AM CET

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Object type

  • Arbeitspapier

Associated

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

Time of origin

  • 2005

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