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

Ahreum Hong, Daeho Lee and Junseok Hwang

Journal of Media Economics, 2011, vol. 24, issue 4, 221-236

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.

Date: 2011
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/08997764.2011.626982

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