Fighting city hall: Entry deterrence and technology upgrades in cable TV markets

Robert C. Seamans

    Research output: Contribution to journalArticle

    Abstract

    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.

    Original languageEnglish (US)
    Pages (from-to)461-475
    Number of pages15
    JournalManagement Science
    Volume58
    Issue number3
    DOIs
    StatePublished - Mar 2012

    Keywords

    • Entry
    • Entry deterrence
    • Public-private interaction
    • Technology

    ASJC Scopus subject areas

    • Strategy and Management
    • Management Science and Operations Research

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