IDEAS home Printed from https://ideas.repec.org/p/qmw/qmwecw/501.html
   My bibliography  Save this paper

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

    Download full text from publisher

    File URL: https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/2003/items/wp501.pdf
    Download Restriction: no
    ---><---

    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    2. Michaelides, Panayotis G. & Vouldis, Angelos T. & Tsionas, Efthymios G., 2010. "Globally flexible functional forms: The neural distance function," European Journal of Operational Research, Elsevier, vol. 206(2), pages 456-469, October.
    3. Tai-Hsin Huang & Yi-Huang Chiu & Chih-Ying Mao, 2021. "Imposing Regularity Conditions to Measure Banks’ Productivity Changes in Taiwan Using a Stochastic Approach," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 28(2), pages 273-303, June.
    4. O'Donnell, Christopher J., 2000. "Estimating The Characteristics Of Homogeneous Functionsusing Flexible Functional Forms," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123713, Australian Agricultural and Resource Economics Society.
    5. Millimet, Daniel L. & Tchernis, Rusty, 2008. "Estimating high-dimensional demand systems in the presence of many binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 147(2), pages 384-395, December.
    6. Crompton, Paul & Lesourd, Jean-Baptiste, 2008. "Economies of scale in global iron-making," Resources Policy, Elsevier, vol. 33(2), pages 74-82, June.
    7. Arndt, Channing, 1999. "Demand For Herbicide In Corn: An Entropy Approach Using Micro-Level Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    8. William Barnett & Meenakshi Pasupathy, 2003. "Regularity of the Generalized Quadratic Production Model: A Counterexample," Econometric Reviews, Taylor & Francis Journals, vol. 22(2), pages 135-154.
    9. Kazuo Ogawa, 2011. "Why Are Concavity Conditions Not Satisfied in the Cost Function? The Case of Japanese Manufacturing Firms during the Bubble Period," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(4), pages 556-580, August.
    10. Sauer, J., 2007. "Monotonicity and Curvature – A Bootstrapping Approach," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    11. Dempsey-Brench, Zara & Volta, Nicola, 2018. "A cost-efficiency analysis of European air navigation service providers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 11-23.
    12. Tai-Hsin Huang & Nan-Hung Liu & Subal C. Kumbhakar, 2018. "Joint estimation of the Lerner index and cost efficiency using copula methods," Empirical Economics, Springer, vol. 54(2), pages 799-822, March.
    13. Dawei Zhang & Zhuo (June) Cheng & Hasan A. Qurban H. Mohammad & Barrie R. Nault, 2015. "Research Commentary—Information Technology Substitution Revisited," Information Systems Research, INFORMS, vol. 26(3), pages 480-495, September.
    14. Tsionas, Mike G. & Izzeldin, Marwan, 2018. "Smooth approximations to monotone concave functions in production analysis: An alternative to nonparametric concave least squares," European Journal of Operational Research, Elsevier, vol. 271(3), pages 797-807.
    15. Mike Tsionas & Marwan Izzeldin & Arne Henningsen & Evaggelos Paravalos, 2022. "Addressing endogeneity when estimating stochastic ray production frontiers: a Bayesian approach," Empirical Economics, Springer, vol. 62(3), pages 1345-1363, March.
    16. Wang, J. & Ghosh, S.K., 2012. "Shape restricted nonparametric regression with Bernstein polynomials," Computational Statistics & Data Analysis, Elsevier, vol. 56(9), pages 2729-2741.
    17. Shankar, Sriram, 2015. "Efficiency analysis under uncertainty: a simulation study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), April.
    18. Scotti, Davide & Volta, Nicola, 2017. "Profitability change in the global airline industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 102(C), pages 1-12.
    19. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.
    20. Jim Griffin & Mark Steel, 2007. "Bayesian stochastic frontier analysis using WinBUGS," Journal of Productivity Analysis, Springer, vol. 27(3), pages 163-176, June.

    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

    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:qmw:qmwecw:501. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Nicholas Owen (email available below). General contact details of provider: https://edirc.repec.org/data/deqmwuk.html .

    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.