Entry, standards and competition: firm strategies and the diffusion of mobile telephony

Heli Koski, London School of Economics, and Tobias Kretschmer, London School of Economics

1/01/2005
(Original Publish Date: 2002)

This paper studies the effect of regulatory settings and competitive environment on the performance of an emerging new technology, digital mobile telecommunication (2G). In contrast to previous studies, however, we take technological performance to consist of several related measures, all of which refer to the degree of market efficiency and the extent of 2G service. Further, we recognize that different dimensions of market performance interact. This interaction potentially creates tradeoffs for public policies aimed at improving overall performance, while econometrically it may yield biased estimates of the effects of regulatory instruments.