search query: @indexterm Switching costs / total: 15
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Author: | Gruber, H. Verboven, F. |
Title: | The evolution of markets under entry and standards regulation - the case of global mobile telecommunications |
Journal: | International Journal of Industrial Organization
2001 : JUL, VOL. 19:7, p. 1189-1212 |
Index terms: | TECHNOLOGY REGULATIONS SWITCHING COSTS STANDARDS NETWORK EXTERNALITIES TELECOMMUNICATIONS INDUSTRY |
Language: | eng |
Abstract: | vThe authors analyze the effects of government policies on the evolution of an industry, the global mobile telecommunications market, (i) The authors find a relatively slow diffusion convergence between countries. This follows partly from regulatory delay in issuing first licenses, yet persisting initial cross-country differences also contribute to a lack of convergence, (ii) Introducing competition has a strong immediate impact on diffusion, but a weak impact afterwards; sequential entry is preceded by pre-emptive behavior by incumbents. This is consistent with the presence of consumer switching costs, (iii) Setting a single technological standard accelerates the diffusion of analogue technologies considerably. |
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