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Metafrontier Production Function Analysis of Horizontal and Vertical Integration in Korea's Cable TV Industry


  • Ahreum Hong
  • Daeho Lee
  • Junseok Hwang


With its remarkable growth, the cable TV industry has witnessed increasing business integration continuously. This study categorizes technology-based operators into 3 groups on the basis of business integration—vertically integrated, horizontally integrated, and isolated system operators-and estimates the efficiency of each group. In addition, metafrontier analysis is employed to compare the efficiencies of the groups. The results suggest that vertically and horizontally integrated system operators can improve technical efficiency by accomplishing economies of scope and scale, respectively.

Suggested Citation

  • Ahreum Hong & Daeho Lee & Junseok Hwang, 2011. "Metafrontier Production Function Analysis of Horizontal and Vertical Integration in Korea's Cable TV Industry," Journal of Media Economics, Taylor & Francis Journals, vol. 24(4), pages 221-236, November.
  • Handle: RePEc:taf:jmedec:v:24:y:2011:i:4:p:221-236 DOI: 10.1080/08997764.2011.626982

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    References listed on IDEAS

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    Cited by:

    1. Yang, Anhyuk & Lee, Daeho & Hwang, Junseok & Shin, Jungwoo, 2013. "The influence of regulations on the efficiency of telecommunications operators: A meta-frontier analysis," Telecommunications Policy, Elsevier, vol. 37(11), pages 1071-1082.

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