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Enterprise in orbit: The supply of communication satellites

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  • Catherine Beaudry

Abstract

This study develops a general understanding of the evolution of the Western World commercial communication sate-llite supply industry. Initial information classifies this industry as an oligopoly with the vendors as price setters. Over three generations, the technical attributes of communication satellites are advancing. Taking the hedonic regression approach, the customer's willingness to pay for characteristics is calculated. Exploring the relationship between price and complexity, it is demonstrated that in the short run, the oligopoly structure of this industry is accompanied by a simple form of cost plus price setting, whereas in the long run, the engineering satellite pricing 'rule of thumb' applies.

Suggested Citation

  • Catherine Beaudry, 2006. "Enterprise in orbit: The supply of communication satellites," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(7), pages 679-700.
    • Handle: RePEc:taf:ecinnt:v:15:y:2006:i:7:p:679-700
    DOI: 10.1080/10438590500475000
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    References listed on IDEAS

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    1. repec:ucp:bknber:9780226304557 is not listed on IDEAS
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    5. Frederick V. Waugh, 1928. "Quality Factors Influencing Vegetable Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 185-196.
    6. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, March.
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    Cited by:

    1. Pierre Barbaroux & Victor Santos Paulino, 2022. "Why do motives matter? A demand-based view of the dynamics of a complex products and systems (CoPS) industry," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1175-1204, September.
    2. Jorge Niosi, 2010. "Building National and Regional Innovation Systems," Books, Edward Elgar Publishing, number 14006.

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