Market structure, competition, and pricing in United States international telephone service markets
AbstractAbstract—Several national governments argue international telephone prices are high because of asymmetric competition and inefficiencies in the accounting arrangements that govern the telecommunications services trade. This paper develops a model of U.S. international telephone pricing that allows for the accounting rate system and contains market-structure variables for both the U.S. and foreign ends of bilateral markets. Model estimation is on 39 bilateral telephone markets from 1991 through 1994. Parameter estimates reveal that settlement rates, market concentration, competition at either end of the bilateral market, and ownership are significant determinants of prices. These findings support initiatives promoting accounting-rate reductions and increased competition.
Download InfoIf 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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11161.
Date of creation: 2000
Date of revision:
Publication status: Published in The Review of Economics and Statistics 82.2(2000): pp. 291-296
United States international telephone service markets;
Other versions of this item:
- Gary Madden & Scott J. Savage, 2000. "Market Structure, Competition, and Pricing in United States International Telephone Service Markets," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 291-296, May.
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hsiao, C. & Appelbe, T.W. & Dineen, C.R., 1992.
"A General Framework for Panel Data Models with an Application to Canadian Customer-Dialed Long Distance Telephone Service,"
90-92-15, California Irvine - School of Social Sciences.
- Hsiao, Cheng & Appelbe, Trent W. & Dineen, Christopher R., 1993. "A general framework for panel data models with an application to Canadian customer-dialed long distance telephone service," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 63-86, September.
- Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
- Severin Borenstein, 1989. "Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 344-365, Autumn.
- Yun, Kyoung-Lim & Choi, Hyun-Woo & Ahn, Byong-Hun, 1997. "The accounting revenue division in international telecommunications: Conflicts and inefficiencies," Information Economics and Policy, Elsevier, vol. 9(1), pages 71-92, March.
- Cowling, Keith & Waterson, Michael, 1976. "Price-Cost Margins and Market Structure," Economica, London School of Economics and Political Science, vol. 43(171), pages 267-74, August.
- Ergas, Henry & Paterson, Paul, 1991. "International telecommunications settlement arrangements : An unsustainable inheritance?," Telecommunications Policy, Elsevier, vol. 15(1), pages 29-48, February.
- Cave, Martin & Donnelly, Mark P., 1996. "The pricing of international telecommunications services by monopoly operators," Information Economics and Policy, Elsevier, vol. 8(2), pages 107-123, June.
- Hakim, Sam Ramsey & Lu, Ding, 1993. "Monopolistic settlement agreements in international telecommunications," Information Economics and Policy, Elsevier, vol. 5(2), pages 145-157, July.
- Acton, Jan Paul & Vogelsang, Ingo, 1992. "Telephone Demand over the Atlantic: Evidence from Country-Pair Data," Journal of Industrial Economics, Wiley Blackwell, vol. 40(3), pages 305-23, September.
- Sullivan, Daniel, 1985. "Testing Hypotheses about Firm Behavior in the Cigarette Industry," Journal of Political Economy, University of Chicago Press, vol. 93(3), pages 586-98, June.
- Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2002.
"Assessing the impact of communication costs on international trade,"
Policy Research Working Paper Series
2929, The World Bank.
- Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2005. "Assessing the impact of communication costs on international trade," Journal of International Economics, Elsevier, vol. 67(2), pages 428-445, December.
- Alleman, James & Madden, Gary G & Savage, Scott J, 2000.
"Trade imbalance in international message telephone services,"
11157, University Library of Munich, Germany.
- James Alleman & Gary Madden & Scott Savage, 2000. "Trade imbalance in international message telephone services," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1311-1321.
- Jason Pearcy & Scott J. Savage, 2009. "The Effects of International Simple Resale on Prices in International Telecommunications Markets," Working Papers 09-19, NET Institute, revised Sep 2009.
- Madden, Gary G & Savage, Scott J & Ng, Jason, 2003.
"Asia-Pacific telecommunications liberalisation and productivity performance,"
10884, University Library of Munich, Germany.
- Gary Madden & Scott J. Savage & Jason Ng, 2003. "Asia-Pacific Telecommunications Liberalisation and Productivity Performance," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 91-102, 03.
- Wallsten, Scott J., 2000. "Telecom traffic and investment in developing countries : the effects of international settlement rate reductions," Policy Research Working Paper Series 2401, The World Bank.
- Christos Agiakloglou & Demetrius Yannelis, 2006. "Estimation of Price Elasticities for International Telecommunications Demand," International Advances in Economic Research, Springer, vol. 12(1), pages 131-137, February.
- Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45788, University Library of Munich, Germany.
- Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45862, University Library of Munich, Germany.
- Alberto Nucciarelli & Massimo Gastaldi & Nathan Levialdi, 2010. "Asymmetric competition and collection rates differentials: determinants of prices in international telephone service markets," Netnomics, Springer, vol. 11(3), pages 315-329, October.
- Rajeev Goel, 2009. "Technological complementarities, demand, and market power," Netnomics, Springer, vol. 10(2), pages 161-170, October.
- James Alleman & Gary Madden & Scott Savage, 2003. "Dominant carrier market power in US international telephone markets," Applied Economics, Taylor & Francis Journals, vol. 35(6), pages 665-673.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.