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Natural or Unnatural Monopolies in UK Telecommunications?

Author

Listed:
  • Lisa Correa

    (Queen Mary, University of London)

Abstract

This paper analyses whether scale economies exists in the UK telecommunications industry. The approach employed differs from other UK studies in that panel data for a range of companies is used. This increases the number of observations and thus allows potentially for more robust tests for global subadditivity of the cost function. The main findings from the study reveal that although the results need to be treated with some caution allowing/encouraging infrastructure competition in the local loop may result in substantial cost savings.

Suggested Citation

  • Lisa Correa, 2003. "Natural or Unnatural Monopolies in UK Telecommunications?," Working Papers 501, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:501
    as

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    File URL: https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/2003/items/wp501.pdf
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    References listed on IDEAS

    as
    1. Ephraim F. Sudit, 1973. "Additive Nonhomogeneous Production Functions in Telecommunications," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 499-514, Autumn.
    2. Terrell, Dek, 1996. "Incorporating Monotonicity and Concavity Conditions in Flexible Functional Forms," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(2), pages 179-194, March-Apr.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Telecommunications; Regulation; Monopoly; Cost functions; Scale economies; Subadditivity;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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