Unnatural Monopolies in Local Telephone
We attempt to overcome the serious data problems of past telecommunications cost studies by focusing on local exchange carriers (LECs). With enough degrees of freedom to yield precise estimates, our global subadditivity tests show that the cost function is definitely not subadditive. The results suggest that the benefits to breaking up the monopoly outputs of existing LECs substantially outweigh the potential losses in efficiency. They also support permitting entry and increasing competition in local exchange markets. Furthermore, given the competitive nature of long distance service, it is doubtful that the predivestiture Bell System was a natural monopoly.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 23 (1992)
Issue (Month): 2 (Summer)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:23:y:1992:i:summer:p:171-183. 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: ()
If references are entirely missing, you can add them using this form.