Entry, Costs Reduction, and Competition in the Portuguese Mobile Telephony Industry

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dc.contributor.author Gagnepain, Philippe
dc.contributor.author Pereira, Pedro
dc.date.accessioned 2014-05-27T14:04:47Z
dc.date.available 2014-05-27T14:04:47Z
dc.date.issued 2007
dc.identifier.bibliographicCitation International Journal of Industrial Organization, (2007), 25 (3), 461-481
dc.identifier.issn 0167-7187
dc.identifier.uri http://hdl.handle.net/10016/5037
dc.description.abstract We study the effect of entry on costs and competition in the Portuguese mobile telephony industry. We construct and estimate a model that includes demand, network, and cost equations. The latter accounts for inefficiency and cost reducing effort. Our results suggest that the entry of a third operator in 1998 lead to significant cost reductions and fostered competition. We also show that failure to account for cost reducing effort leads to biased estimates of competition in the industry. Finally, we also find that our estimated price–cost margins are similar to hypothetical Nash margins, if firms are patient and have optimistic beliefs about the industry growth.
dc.description.sponsorship Ministerio de Educación y Ciencia (SEJ2004-00670)
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.relation.isversionof http://hdl.handle.net/10016/5044
dc.rights © 2006 Elsevier B.V.
dc.subject.other Mobile telephony
dc.subject.other Entry compettion
dc.subject.other Efficiency
dc.subject.other Empirical analysis
dc.title Entry, Costs Reduction, and Competition in the Portuguese Mobile Telephony Industry
dc.type article
dc.type.review PeerReviewed
dc.description.status Publicado
dc.relation.publisherversion http://dx.doi.org/10.1016/j.ijindorg.2006.05.007
dc.subject.jel L13
dc.subject.jel L43
dc.subject.jel L93
dc.subject.eciencia Economía
dc.identifier.doi 10.1016/j.ijindorg.2006.05.007
dc.rights.accessRights openAccess
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 461
dc.identifier.publicationissue 3
dc.identifier.publicationlastpage 481
dc.identifier.publicationtitle International Journal of Industrial Organization
dc.identifier.publicationvolume 25
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