publication . Preprint . Article . 2007

Entry Threat and Entry Deterrence: The Timing of Broadband Rollout

Mo Xiao; Peter F. Francis Orazem;
Open Access
  • Published: 01 Sep 2007
Abstract
Past empirical literature provides strong evidence that competition increases when new firms enter a market. However, rarely have economists been able to examine how competition changes with the threat of entry. This paper uses the evolution of the zip code level market structure of facilities-based broadband providers from 1999 to 2004 to investigate how a firm adjusts its entry strategy when facing the threat of additional entrants. We identify the potential entrant into a local market as threatened when a neighboring market houses more than firms providing broadband services. We first document that such a market is more likely to accommodate more than firms i...
Subjects
free text keywords: Entry, Entry Threat, Broadband Providers, jel:L13, jel:L8, Market power, Empirical literature, Deterrence theory, Oligopoly, Endogeneity, Barriers to entry, Industrial organization, Broadband, Business, Market structure
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publication . Preprint . Article . 2007

Entry Threat and Entry Deterrence: The Timing of Broadband Rollout

Mo Xiao; Peter F. Francis Orazem;