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Welfare‐Improving Privatization Policy In The Telecommunications Industry

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  • SANG‐HO LEE

Abstract

This article considers the vertical structure of the telecommunications industry and examines the welfare effects of privatization on the public enterprise, where the public enterprise supplies the essential network service of the upstream market and competes against private, independent firms in a mixed downstream market. It is shown that the cost advantage of the independent rivals improves welfare postprivatization. Several relevant and current policy issues on the process of privatization in the telecommunications industry are also discussed. (JEL L50, D42)

Suggested Citation

  • Sang‐Ho Lee, 2006. "Welfare‐Improving Privatization Policy In The Telecommunications Industry," Contemporary Economic Policy, Western Economic Association International, vol. 24(2), pages 237-248, April.
    • Handle: RePEc:bla:coecpo:v:24:y:2006:i:2:p:237-248
    DOI: 10.1093/cep/byj009
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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