Measuring Economies of Vertical Integration in Network
AbstractThis paper provides a framework that aims at distinguishing the technological economies of vertical integration from the vertical economies resulting from market imperfections. To illustrate our analyze, we use consistent panel data econometric methods to estimate cost functions on a sample of North-American water utilities. Contrary to what has been found for other network industries (electricity and gas for instance), we show that the economies of vertical integration are only significant for the smallest utilities
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 184.
Date of creation: 11 Aug 2004
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Vertical integration; water network; cost function;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-30 (All new papers)
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