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Competition in a Network Industry: The Telephone Industry, 1894–1910

Published online by Cambridge University Press:  03 March 2009

David Gabel
Affiliation:
Associate Professor, Queens College and Graduate Center, Department of Economics, City University of New York, Flushing, NY 11367, and Affiliated Research Fellow, Center for Telecommunications and Information Studies, Columbia University.

Abstract

The re-emergence of AT&T as the dominant firm in the telephone industry resulted from its adopting a predatory response to entrants. AT&T's strategy was effective because government regulations and capital market imperfections provided the incumbent with a first-mover advantage that prevented challengers from entering simultaneously in all markets.

Type
Articles
Copyright
Copyright © The Economic History Association 1994

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