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

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  • Ahreum Hong
  • Daeho Lee
  • Junseok Hwang

Abstract

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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    Cited by:

    1. An-Chi Liu & Junyi Wang & Yiting Zhan & Chien-Jung Li & Yang Li, 2021. "Meta-Frontier Analysis of Disclosing Sustainable Development Information: Evidence from China’s AI Industry," Energies, MDPI, vol. 14(19), pages 1-13, September.
    2. Sadaf Hafeez & Noreen Izza Arshad & Lukman Bin A B Rahim & Muhammad Farooq Shabbir & Jawad Iqbal, 2020. "Innovation in Chinese internet companies: A meta-frontier analysis," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-15, May.
    3. Lee, Kyoungsun & Park, Yuri & Lee, Daeho, 2018. "Measuring efficiency and ICT ecosystem impact: Hardware vs. software industry," Telecommunications Policy, Elsevier, vol. 42(2), pages 107-115.
    4. 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.
    5. Hana Kim & Daeho Lee & Min Ho Ryu, 2018. "An Optimal Strategic Business Model for Small Businesses Using Online Platforms," Sustainability, MDPI, vol. 10(3), pages 1-11, February.

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