Advanced Search
MyIDEAS: Login

Rejoinder---Natural Monopoly and the Bell System: Response to Charnes, Cooper and Sueyoshi

Contents:

Author Info

  • David S. Evans

    (Department of Economics, Fordham University, Bronx, New York 10458)

  • James J. Heckman

    (Department of Economics, University of Chicago, Chicago, Illinois 60637)

Abstract

Our study of the Bell System cost function shows that it is possible to reject the hypothesis that AT&T was a natural monopoly. Our study is based on a regression analysis of a translog cost function estimated on 1947--1977 data. Charnes, Cooper, and Sueyoshi (Charnes, A., W. W. Cooper, T. Sueyoshi. 1988. A goal programming/constrained regression review of the bell system breakup. Management Sci. 34 1--26.) claim that they reverse our conclusion when they use goal programming estimators of a translog cost function estimated on exactly the same data that we use. This claim is false. There is no basis for comparing our estimates with their estimates because they, in fact, use different data than we use and estimate a different cost function than we estimate. Moreover, when goal programming estimates and regression estimates based on the same data and similar cost function specifications are compared, they yield similar estimates and produce the same inference about natural monopoly.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1287/mnsc.34.1.27
Download Restriction: no

Bibliographic Info

Article provided by INFORMS in its journal Management Science.

Volume (Year): 34 (1988)
Issue (Month): 1 (January)
Pages: 27-38

as in new window
Handle: RePEc:inm:ormnsc:v:34:y:1988:i:1:p:27-38

Contact details of provider:
Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
Phone: +1-443-757-3500
Fax: 443-757-3515
Email:
Web page: http://www.informs.org/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Maher, Maria E., 1999. "Access costs and entry in the local telecommunications network: a case for de-averaged rates," International Journal of Industrial Organization, Elsevier, vol. 17(4), pages 593-609, May.
  2. Das, Nibedita, 2000. "Technology, efficiency and sustainability of competition in the Indian telecommunications sector," Information Economics and Policy, Elsevier, vol. 12(2), pages 133-154, June.
  3. Nadiri, M. Ishaq & Nandi, Banani, 1997. "The changing structure of cost and demand for the U.S. telecommunications industry," Information Economics and Policy, Elsevier, vol. 9(4), pages 319-347, December.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:34:y:1988:i:1:p:27-38. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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