标题：Diversification of cable television firms into broadband products
作者机构：[Tang, Mingzhe] Shandong Univ, Sch Econ, Jinan, Peoples R China.
通讯作者地址：[Tang, MZ]B428 Zhixin Bldg,S Shanda Rd, Jinan 250100, Shandong, Peoples R China.
关键词：Broadband diffusion; Cable television; Network upgrade; Multiple product; choices
摘要：This research provides a new perspective to investigate the broadband diffusion in eight states of the U.S. by studying the two-stage entry decisions, namely, upgrading and subsequent product decisions, by the cable television system operators, one of the early dominant players in the broadband market, and examines the role of competition, market characteristics and firm heterogeneity in the cable company's decisions in a dynamic setting. Comparing the empirical results of the decision models of both stages can give new insights into the dynamics of broadband diffusion. The empirical results show that the subsequent product decision is affected more by the demand determinants, while the upgrading decision is affected more by the cost determinants. The results also indicate that policies which aim to reduce the entry cost such as a low city fee can largely encourage firms to upgrade the network, while subsequent policies that help boost the demand can help firms diversify into new digital services early. The effectiveness of competition policy in the broadband diffusion is confirmed in both stages. Strategic responses by cable firms to the presence of RBOCs are more noticeable in the second-staged product decision than in the first-staged upgrading decision. (C) 2011 Elsevier Ltd. All rights reserved.