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Efficiency vs. market-power effects in the mobile-voice industry

Author

Listed:
  • Corrado Andini

    (University of Madeira, CEEAplA and IZA)

Abstract

This paper suggests a new procedure for separating the market-power effect from the efficiency effect when cost data are not available. We examine a panel of data on 177 mobile-voice operators in 45 countries from 1999:1 to 2004:2 and find that a 1% increase in the market share of an operator increases its price-cost margin by 0.58-0.66%, but only a small share of this increase is due to a market-power effect.

Suggested Citation

  • Corrado Andini, 2011. "Efficiency vs. market-power effects in the mobile-voice industry," Economics Bulletin, AccessEcon, vol. 31(1), pages 85-92.
    • Handle: RePEc:ebl:ecbull:eb-10-00785
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P10.pdf
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    Cited by:

    1. Massimiliano Agovino & Antonio Garofalo, 2016. "The Impact of Education on Wage Determination between Workers in Southern and Central-Northern Italy," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(1), pages 25-43, March.

    More about this item

    Keywords

    Telecommunications; Panel Data;

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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