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Publications
Subject(s)
Economics, politics and business environment; Strategy and general management; Technology, R&D management
Keyword(s)
Market entry, pre-entry experience, demand-side perspective, information & communication technologies
JEL Code(s)
C51, L10, O33
We offer theory and evidence about how the fit between firm experience (supply side) and consumer preferences (demand side) affects postentry performance into a new technology. Specifically, we explore different types of preentry experience (technological and market experience) and use different aspects of postentry performance to draw inferences about consumer heterogeneity. Preentry technological experience (same product and different consumers) helps firms attract a larger share of intensive users (aligning with early adopters) but only if they enter the market early when these adopters make decisions. Preentry market experience (different product and same consumers) helps firms attract a larger share of lighter users, consistent with characterizations of mass market users. Exploiting different components of firm performance in the global second-generation mobile telecommunications industry (average usage intensity and market penetration) allows us to articulate and identify the paths and mechanisms that allow preentry experience to affect postentry performance. The theory as well as important theoretical boundary conditions have implications for research on preentry experience, demand-side heterogeneity, and industry evolution.
© 2019, INFORMS
Volume
31
Journal Pages
245–265
Journal Article
Review of Industrial Organization 55 (3): 375–402
Michał Grajek, Klaus Gugler, Tobias Kretschmer, Ion Mişcişin (2019)
Subject(s)
Economics, politics and business environment; Information technology and systems; Technology, R&D management
Keyword(s)
Telecom mergers, static and dynamic efficiency, difference-in-difference
JEL Code(s)
L22, O33, G34, L96
Volume
55
Journal Pages
375–402
Journal Article
International Journal of Industrial Organization 61 (November): 613–652
Wolfgang Briglauer, Carlo Cambini, Michał Grajek (2018)
Subject(s)
Economics, politics and business environment; Information technology and systems; Technology, R&D management
Keyword(s)
Internet access market, access regulation, investment, infrastructure, Next Generation Networks, broadband, telecom, cable operators and EU regulatory framework
JEL Code(s)
L96, L51
In this paper, we study how the coexistence of access regulations for legacy (copper) and fiber networks shapes the incentives to invest in fiber-based network infrastructures. To this end, we first develop a theoretical model that extends the existing literature by, among other things, considering alternative firms with proprietary legacy network (e.g., cable operators) and the presence of asymmetric mandated access to networks. In the empirical part, we test the theoretical predictions using a novel panel data from 27 EU member states pertaining to the last decade. Our main finding is that, in line with the theoretical results, stricter access regulations (i.e., a decrease in access price to legacy network and the adoption of fiber regulation) decrease the incumbent operators’ fiber investments. The estimated magnitude of these effects is economically significant. On the other hand, cable operators, who are responsible for the largest share of investments in fiber, are not affected by access regulation. Our paper thus provides policy insights for the on-going revision of the EU regulation framework for the electronic communications industry.
With permission of Elsevier
Volume
61
Journal Pages
613–652
Journal Article
International Journal of Industrial Organization 36 (5): 70–82
Joseph A. Clougherty, Michał Grajek (2014)
Subject(s)
Economics, politics and business environment
Keyword(s)
Networks, international trade, standards, technical trade barriers, ISO 9000
JEL Code(s)
C51, F13, L15
Empirical scholarship on the standards-trade relationship has been held up due to methodological challenges: measurement, varied effects, and endogeneity. Considering the trade-effects of one particular standard (ISO 9000), we surmount methodological challenges by measuring standardization via national penetration of ISO 9000, allowing standardization to manifest via multiple (quality-signaling, information/compliance-cost, and common-language) channels, and using instrumental variable, multilateral resistance and panel data techniques to overcome endogeneity. We find evidence of common-language and quality-signaling augmenting country-pair trade. Yet, ISO-rich nations (most notably European) benefit the most from standardization, while ISO-poor nations find ISO 9000 to represent a trade barrier due to compliance-cost effects.
With permission of Elsevier
Volume
36
Journal Pages
70–82
Journal Article
International Journal of Industrial Organization 30 (6): 496–507
Michał Grajek, Tobias Kretschmer (2012)
Subject(s)
Economics, politics and business environment
Keyword(s)
critical mass, network effects, diffusion of innovations, compatibility
JEL Code(s)
C53, L14, M37
Technology diffusion processes are often said to have critical mass phenomena. We apply a model of demand with installed base effects to provide theoretically grounded empirical insights about critical mass. Our model allows us to rigorously identify and quantify critical mass as a function of installed base and price. Using data from the digital cellular telephony market, which is commonly assumed to have installed base effects, we apply our model and find that installed base effects were generally not strong enough to generate critical mass phenomena, except in the first cellular markets to introduce the technology.
With permission of Elsevier
Volume
30
Journal Pages
496–507
Journal Article
The Journal of Law and Economics 55 (1): 189–216
Subject(s)
Economics, politics and business environment
Keyword(s)
telecommunications, access regulation, unbundling, investment
JEL Code(s)
C51, L59, L96
We provide evidence of an inherent trade-off between access regulation and investment incentives in telecommunications by using a comprehensive data set covering 70+ fixed-line operators in 20 countries over 10 years. Our econometric model accommodates: different investment incentives for incumbents and entrants; a strategic interaction of entrants' and incumbents' investments; and endogenous regulation. We find access regulation to negatively affect both total industry and individual carrier investment. Thus promoting market entry by means of regulated access undermines incentives to invest in facilities-based competition. Moreover, we find evidence of a regulatory commitment problem: higher incumbents' investments encourage provision of regulated access.
With permission of the University of Chicago Press
Volume
55
Journal Pages
189–216
Journal Article
Applied Economics 43 (14): 1737–1748
Jonathan Beck, Michał Grajek, Christian Wey (2011)
Subject(s)
Economics, politics and business environment
Keyword(s)
diffusion, information technology, retail competition
JEL Code(s)
L5, L81, O33
Volume
43
Journal Pages
1737–1748
Journal Article
Information Economics and Policy 22 (2): 130–143
Subject(s)
Economics, politics and business environment
Keyword(s)
structural econometric model, network effects, compatibility, mobile telephony
JEL Code(s)
C51, D12, L96
I develop a structural demand model for mobile telephony that facilitates the identification of network effects and inter-network compatibility. Network effects are measured as the dependence of consumer willingness to pay on the installed base of subscribers, compatibility as the relative extent of cross- and own-network effects. Estimating the model using quarterly panel data from the Polish mobile telephone market for the period 1996-2001, I find strong network effects and, despite full interconnection of the mobile telephone networks, low compatibility. I also show that ignoring network effects leads to overestimation of demand elasticity.
With permission of Elsevier
Volume
22
Journal Pages
130–143
Journal Article
International Journal of Industrial Organization 27 (2): 238–249
Michał Grajek, Tobias Kretschmer (2009)
Subject(s)
Strategy and general management
Keyword(s)
cellular telephony, diffusion, usage intensity, network effects, consumer heterogeneity, fixed-mobile substitution
JEL Code(s)
L1, L52, O38
We study the dynamics of usage intensity of second-generation cellular telephony over the diffusion curve. Specifically, we address two questions: First, can we draw conclusions about the underlying drivers of technology diffusion by studying usage intensity? Second, what is the effect of high penetration of previous generations and competing networks on network usage intensity? Using an operator-level panel covering 41 countries with quarterly data over 6 years, we find that heterogeneity among adopters dominates network effects and that different technological generations are complements in terms of usage, but substitutes in terms of subscription.
With permission of Elsevier
Volume
27
Journal Pages
238–249
Journal Article
Journal of International Business Studies 39 (4): 613–633
Joseph A. Clougherty, Michał Grajek (2008)
Subject(s)
Strategy and general management
Keyword(s)
theory of FDI and the MNE; trade flows; transaction cost analysis; institutional environment
JEL Code(s)
M16, L15, C51
Volume
39
Journal Pages
613–633
Journal Article
Economic Change and Restructuring 36 (1): 23–44
Subject(s)
Economics, politics and business environment
Keyword(s)
decomposition, earnings differentials, gender, planned economy, Poland, transition economy
JEL Code(s)
J31, C51
Volume
36
Journal Pages
23–44
ISSN (Online)
1574-0277
ISSN (Print)
1573-9414
Journal Article
Przeglad Statystyczny (Statistical Review) 49 (2): 69–81
Subject(s)
Economics, politics and business environment
Keyword(s)
forecasting, GDP, inflation, unemployment
JEL Code(s)
E27
Volume
49
Journal Pages
69–81