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Network Production, Efficiency And Technological Options: Toward A New Dynamic Theory Of Telecommunications

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  • Giovanni Marini
  • Andrea Pannone

Abstract

In this work we propose a new model for the analysis of telecommunications (Tlc) networks production. This represents an extension of the fund-flow model by Georgescou-Roegen originally applied to the manufacture and agriculture sectors. The adopted framework enables us to describe the functioning of a Tlc network - and the technique underlying the different types of Tlc traffic - by means of a system of multi-production where the production time profile has been clearly defined. One of the most innovative elements of our analysis is the ability to analytically represent the qualitative features of technological options. It also signals new productive options connected to new Tlc services and the introduction of new network facilities. In this way we hope to both further a theoretical understanding of the technological dynamics of the Tlc sector, and provide guidance as to the strategic choices of the economic actors involved.

Suggested Citation

  • Giovanni Marini & Andrea Pannone, 1998. "Network Production, Efficiency And Technological Options: Toward A New Dynamic Theory Of Telecommunications," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(3), pages 177-201.
    • Handle: RePEc:taf:ecinnt:v:7:y:1998:i:3:p:177-201
    DOI: 10.1080/10438599800000033
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    References listed on IDEAS

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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, April.
    3. Georgescu-Roegen, Nicholas, 1970. "The Economics of Production," American Economic Review, American Economic Association, vol. 60(2), pages 1-9, May.
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    Cited by:

    1. Marini, Giovanni & Pannone, Andrea, 2007. "Capital and capacity utilization revisited: A theory for ICT-assisted production systems," Structural Change and Economic Dynamics, Elsevier, vol. 18(2), pages 231-248, June.
    2. Pannone, Andrea, 2010. "Production, unemployment and wage flexibility in an ICT-assisted economy: A model," Structural Change and Economic Dynamics, Elsevier, vol. 21(3), pages 219-230, August.

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    More about this item

    Keywords

    Network production; Fund-flow model; Technological options; Qualitative changes; Dynamic analysis JEL Classification: L96;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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