Economic analysis of process innovation: The case study of the German telecommunication market
The effects of a new firm's entry into the telecom service market are examined further. These consist of up- and downstream markets, corresponding to the first and second stages in game theory. When a new entrant can succeed in process innovation and lower production cost, entry of the entrant...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2024-03-01
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| Series: | Innovation and Green Development |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2949753123000632 |
| _version_ | 1797359902105010176 |
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| author | Chuan Yang Yasuo Kawashima |
| author_facet | Chuan Yang Yasuo Kawashima |
| author_sort | Chuan Yang |
| collection | DOAJ |
| description | The effects of a new firm's entry into the telecom service market are examined further. These consist of up- and downstream markets, corresponding to the first and second stages in game theory. When a new entrant can succeed in process innovation and lower production cost, entry of the entrant transforms the market structure into a Joint-Profit-Maximization monopoly under the European Commission (EC) constraint. However, the post-entry market becomes more competitive if the EC did not intervene the market. We observed that violation of the test does not necessarily mean the incumbent practices a margin squeeze. The EC does not prove that margin squeeze is a necessary and sufficient condition for the exit. Furthermore, Joint-Profit-Maximization monopoly can serve to explain why Japanese Telecoms fees are high. |
| first_indexed | 2024-03-08T15:30:29Z |
| format | Article |
| id | doaj.art-7351dcbbe0cc4d2a8f9ef4d633fca2c5 |
| institution | Directory Open Access Journal |
| issn | 2949-7531 |
| language | English |
| last_indexed | 2024-03-08T15:30:29Z |
| publishDate | 2024-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Innovation and Green Development |
| spelling | doaj.art-7351dcbbe0cc4d2a8f9ef4d633fca2c52024-01-10T04:39:37ZengElsevierInnovation and Green Development2949-75312024-03-0131100095Economic analysis of process innovation: The case study of the German telecommunication marketChuan Yang0Yasuo Kawashima1Faculty of Global Management, Chuo University, 742-1, Higashinakano, Hachioji-shi, Tokyo, Japan; Corresponding author.Faculty of Economics, Chuo University, 742-1, Higashinakano, Hachioji-shi, Tokyo, JapanThe effects of a new firm's entry into the telecom service market are examined further. These consist of up- and downstream markets, corresponding to the first and second stages in game theory. When a new entrant can succeed in process innovation and lower production cost, entry of the entrant transforms the market structure into a Joint-Profit-Maximization monopoly under the European Commission (EC) constraint. However, the post-entry market becomes more competitive if the EC did not intervene the market. We observed that violation of the test does not necessarily mean the incumbent practices a margin squeeze. The EC does not prove that margin squeeze is a necessary and sufficient condition for the exit. Furthermore, Joint-Profit-Maximization monopoly can serve to explain why Japanese Telecoms fees are high.http://www.sciencedirect.com/science/article/pii/S2949753123000632O31L13L43L51 |
| spellingShingle | Chuan Yang Yasuo Kawashima Economic analysis of process innovation: The case study of the German telecommunication market Innovation and Green Development O31 L13 L43 L51 |
| title | Economic analysis of process innovation: The case study of the German telecommunication market |
| title_full | Economic analysis of process innovation: The case study of the German telecommunication market |
| title_fullStr | Economic analysis of process innovation: The case study of the German telecommunication market |
| title_full_unstemmed | Economic analysis of process innovation: The case study of the German telecommunication market |
| title_short | Economic analysis of process innovation: The case study of the German telecommunication market |
| title_sort | economic analysis of process innovation the case study of the german telecommunication market |
| topic | O31 L13 L43 L51 |
| url | http://www.sciencedirect.com/science/article/pii/S2949753123000632 |
| work_keys_str_mv | AT chuanyang economicanalysisofprocessinnovationthecasestudyofthegermantelecommunicationmarket AT yasuokawashima economicanalysisofprocessinnovationthecasestudyofthegermantelecommunicationmarket |