ECONOMETRIC COST-STRUCTURE ESTIMATES FOR CELLULAR TELEPHONY IN THE UNITED-STATES

Authors
MCKENZIE DJ SMALL JP
Citation
Dj. Mckenzie et Jp. Small, ECONOMETRIC COST-STRUCTURE ESTIMATES FOR CELLULAR TELEPHONY IN THE UNITED-STATES, Journal of regulatory economics, 12(2), 1997, pp. 147-157
Citations number
7
Categorie Soggetti
Economics
Journal title
Journal of regulatory economics → ACNP
ISSN journal
0922680X
Volume
12
Issue
2
Year of publication
1997
Pages
147 - 157
Database
ISI
SICI code
0922-680X(1997)12:2<147:ECEFCT>2.0.ZU;2-B
Abstract
This article estimates economies of scale for a sample of five cellula r telephony firms in the United States. We reject constant returns to scale for all but the smallest firm studied; the remaining firms exhib it decreasing returns to scale. This finding suggests that scale econo mies cannot be used to justify the current regulated duopoly structure of United States cellular markets.