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This article suggests that, in a limited orbital environment, megasatellite constellations can be strategically scaled to discourage competitors from entering the market. It shows that an incumbent operator can deploy more satellites than are necessary for efficiency in order to increase congestion...

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Bibliografiske detaljer
Hovedforfatter: Hohlfeldt, Marion
Format: Article ou chapitre numérique
Sprog:Français
Udgivet: 2017
Online adgang:Accès Université d'Orléans et IFPM
Accès Université d'Orléans et IFPM
Beskrivelse
Summary:This article suggests that, in a limited orbital environment, megasatellite constellations can be strategically scaled to discourage competitors from entering the market. It shows that an incumbent operator can deploy more satellites than are necessary for efficiency in order to increase congestion and reduce the incentive to enter the market. This oversizing reduces the lifespan of all satellites, including those of the incumbent operator, but may nevertheless prove profitable if it preserves monopoly rents. This study underscores that the regulation of space activities must be designed with both environmental constraints and the competitive context in mind. It also complements the existing literature on industrial organization by describing a new lever that grants a first-mover advantage within the framework of a sequential investment game.