We consider these economic forces to be primary drivers of the investment incentives faced by participants in the wireless value chain. These investment incentives, by driving observable outcomes such as financial results, market structures, and innovation paths, can be understood as exerting significant explanatory power upon value chain dynamics.
The successful validation of the model proved that our hypothesis of tying together value chain analysis with classical economic forces through a System Dynamics fabric not only works, but allows to consider through practical assumption what chain repercussions future investment decisions by value chain players will have on their immediate and long-term profitability and value creation.
We are happy to have framed value chain dynamics in a System Dynamics model that both welcomes the rapid change characterizing the wireless telecommunications industry and accounts for the effects of our chosen economic forces. The validation efforts we undertook were successful, and lend insight toward dynamics witnessed historically within the wireless value chain. Many avenues remain open for further research, however, so we end by discussing a few particularly appealing prospects for additional work and their potential for value.
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