For the past couple of weeks, AT&T and Verizon have been going at each other with their new advertisement. It started when Verizon advertised that AT&T had spotty 3G signal. AT&T took it to court and lost so they decided to come back with their own advertisements bashing Verizon. It has turned into a dynamic game with Verizon making the first move and then AT&T following them. AT&T retaliated with the fact that their services covered more of the United States including Hawaii and Alaska than Verizon. Then Verizon came out with another one for how they have the fastest 3G internet and AT&T responded with how you can talk on the phone and surf the internet simultaneously with their network.
This dynamic game they are playing is a Stackelberg (except that they are not choosing outputs) because the first move isn't really an advantage. Although Verizon makes the first move, AT&T are able to address Verizon's claims and even make further claims of their own with their response. They are able to consider Verizon's decision and return with a better response which then makes the first move not as powerful as it was meant to be. I am biased towards AT&T because of the iPhone but I wonder how long they will continue beating each other up or if T-Mobile or Sprint might join in on the action.
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I would imagine that any mobile service able to compete with verizon and AT&T might get in on the debate. There may even be some collusion between two of the providers to attack the other. I believe it is sprint that just came out with a pretty cool new phone similar to the I-phone. However, considering the magnitude of Verizon and AT&T, it might be in other competitors best interest to avoid the market and let the two destroy eachother (not that I think that would happen).
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