Dominant carrier market power in US international telephone markets

James Alleman (), Gary Madden and Scott James Savage ()

Applied Economics, 2003, vol. 35, issue 6, pages 665-673

Abstract: An econometric model is used to examine market power in US international telephone markets. Lerner index estimates suggest AT & T's collection rate-cost margin was between 12% and 24% during 1991 to 1995. Although Lerner estimates imply deadweight welfare losses of up to US $261 million per annum, such losses are small compared to those from the inefficient pricing of international interconnection. Settlement rate-cost margins on US bilateral markets of approximately 89% translate into a US $4907 million transfer from consumers to carriers in 1995.

Date: 2003
View list of references

Downloads: (external link)
http://taylorandfrancis.metapress.com/link.asp?tar ... &id=7D5GTF11U4K1GBK9 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:applec:v:35:y:2003:i:6:p:665-673

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Applied Economics is edited by Mark Taylor

More articles in Applied Economics from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().