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Research on Entry Decision of Telecom Enterprises under Deregulation

  • 2013-09-21
  • 299.92KB
  • Points it Requires : 2

Under the entire entry deregulation, a two-stage model of entrant decision is established. Researching the entrant decision by utilizing the real-option approach, the entry decision rules with flexibility are given. The result shows that the entrant\'s entry is decided by the comparative relationship between the market demand and the threshold, and the value of threshold depends on the entry cost and the scale of the incumbent. Therefore, the entire entry deregulation not only optimizes the telecommunication industry competition status, but also promotes the telecommunication industry technology because blind network duplication is avoided.

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