Fighting City Hall: Entry Deterrence and Technology Upgrades in Cable TV Markets

• 成果类型: Article
• 署名作者: Seamans, Robert C.
• 署名单位: New York University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1110.1440
• 发表日期: 2012
• 页码: 461-475
• 关键词: entry; entry deterrence; TECHNOLOGY; public-private interaction

摘要

This article investigates how private firms respond to potential entry from public firms. This paper uses a data set of over 3,000 U.S. cable TV systems to present evidence consistent with entry deterrence. incumbent cable TV firms upgrade faster when located in markets with a potential municipal entrant. However, the same systems are then slower to offer new products enabled by the upgrade, suggesting upgrades in these markets occur for strategic reasons. Incumbent cable systems also upgrade faster in response to municipal entry threats than to private entry threats. Understanding how private firms respond to potential entry from public firms is especially important in light of recent U.S. government entry into several industries.