Market Penetration and Late Entry in Mobile Telephony

Steffen Hoernig
<span title="">2008</span> <i title="Elsevier BV"> <a target="_blank" rel="noopener" href="https://fatcat.wiki/container/tol7woxlqjeg5bmzadeg6qrg3e" style="color: black;">Social Science Research Network</a> </i> &nbsp;
We consider some two dynamic models of entry in mobile telephony, with and without strategic pricing, and taking into account market penetration at entry, locked-in consumers and tariff-mediated network externalities. We show that on/off-net differentials may reduce the possibility of entry if incumbents are large, while they have no long-run effects if there are no locked-in consumers, or reduce the difference in subscriber numbers in their presence. Asymmetric fixedto-mobile or
more &raquo; ... e termination rates increase (decrease) market share and profit of the network with the higher (lower) rate. While the fixed-to-mobile waterbed effect is not full at the network level, it will be full in the aggregate.
<span class="external-identifiers"> <a target="_blank" rel="external noopener noreferrer" href="https://doi.org/10.2139/ssrn.1291952">doi:10.2139/ssrn.1291952</a> <a target="_blank" rel="external noopener" href="https://fatcat.wiki/release/b4cym6qumzazlmgqsg7o7lzzz4">fatcat:b4cym6qumzazlmgqsg7o7lzzz4</a> </span>
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