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Econometric Cost Structure Estimates for Cellular Telephony in the United States

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Author Info
McKenzie, David J
Small, John P

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Abstract

This article estimates economies of scale for a sample of five cellular telephony firms in the United States. We reject constant returns to scale for all but the smallest firm studied; the remaining firms exhibit decreasing returns to scale. This finding suggests that scale economies cannot be used to justify the current regulated duopoly structure of United States cellular markets. Copyright 1997 by Kluwer Academic Publishers

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File URL: http://journals.kluweronline.com/issn/0922-680X/contents
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Publisher Info
Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 12 (1997)
Issue (Month): 2 (September)
Pages: 147-57
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Handle: RePEc:kap:regeco:v:12:y:1997:i:2:p:147-57

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Web page: http://www.springerlink.com/link.asp?id=100298

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  1. Madden, Gary G & Bloch, Harry & Coble-Neal, Grant, 2002. "Labour and capital saving technical change in telecommunications," MPRA Paper 10683, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  2. Takanori Ida & Toshifumi Kuroda, 2009. "Discrete choice model analysis of mobile telephone service demand in Japan," Empirical Economics, Springer, vol. 36(1), pages 65-80, February. [Downloadable!] (restricted)
  3. Philippe Gagnepain & Pedro Pereira, 2005. "Entry, Costs Reduction, and Competition in the Portuguese Telephony Industry," Working Papers 05, Portuguese Competition Authority. [Downloadable!]
  4. Ottoz Elisabetta & Di Giacomo Marina, 2008. "Diversification strategies and scope economies evidence from a sample of Italian bus transport providers," Department of Economics Working Papers 200802, University of Turin. [Downloadable!]
  5. Gagnepain, Philippe & Pereira, Pedro, 2005. "Entry, Cost Reduction and Competition in The Portuguese Mobile Telephone Industry," CEPR Discussion Papers 4993, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Bloch, Harry & Madden, Gary G & Coble-Neal, Grant, 2001. "The cost structure of Australian telecommunications," MPRA Paper 11019, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  7. Gasmi, Farid & Ivaldi, Marc & Recuero, Laura, 2008. "An Empirical Analysis of Cellular Demand in South Africa," IDEI Working Papers 531, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
    Other versions:
  8. César Mattos & Paulo Coutinho, 2004. "The Duopoly Policy in the Brazilian Model of Telecommunications Reform," Revista Brasileira de Economia, Graduate School of Economics, Getulio Vargas Foundation (Brazil), vol. 58(3), April. [Downloadable!]
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