IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/813.html
   My bibliography  Save this paper

The European Satellite Industry: Prospects for Liberalization

Author

Listed:
  • Neven, Damien J
  • Röller, Lars-Hendrik
  • Waverman, Leonard

Abstract

This paper evaluates the effects of liberalizing access to the space sector, as currently envisaged by the EC Commission. We undertake an econometric evaluation of the degree of scale economies in satellite operations and calibrate a Cournot model of competition in which the effect of liberalization is modelled as the segmentation of national markets that currently prevails. We conclude that existing players in the satellite operations industry would make negative profits under liberalization. We find that four players would break even and operate close to the minimum efficient scale (of about ten satellites). We also conclude that some consolidation is required in the production of satellites. In both cases it seems that intervention by a supra-national authority like the EC Commission would be useful.

Suggested Citation

  • Neven, Damien J & Röller, Lars-Hendrik & Waverman, Leonard, 1993. "The European Satellite Industry: Prospects for Liberalization," CEPR Discussion Papers 813, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:813
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=813
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Einhorn, Michael A., 1998. "Restructuring and competition in international telecommunications: the case of INTELSAT," Information Economics and Policy, Elsevier, vol. 10(2), pages 197-218, June.
    2. Zervos, Vasilis & Siegel, Donald S., 2008. "Technology, security, and policy implications of future transatlantic partnerships in space: Lessons from Galileo," Research Policy, Elsevier, vol. 37(9), pages 1630-1642, October.
    3. Vasilis Zervos, 2011. "Conflict in Space," Chapters, in: Derek L. Braddon & Keith Hartley (ed.), Handbook on the Economics of Conflict, chapter 9, Edward Elgar Publishing.

    More about this item

    Keywords

    Deregulation; Satellite Industry; Space;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:813. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.