Efficiency vs. market-power effects in the mobile-voice industry

Corrado Andini

Economics Bulletin, 2011, vol. 31, issue 1, 85-92

Abstract: This paper suggests a new procedure for separating the market-power effect from the efficiency effect when cost data are not available. We examine a panel of data on 177 mobile-voice operators in 45 countries from 1999:1 to 2004:2 and find that a 1% increase in the market share of an operator increases its price-cost margin by 0.58-0.66%, but only a small share of this increase is due to a market-power effect.

Keywords: Telecommunications; Panel Data (search for similar items in EconPapers)
JEL-codes: C2 L9 (search for similar items in EconPapers)
Date: 2011-01-04
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Citations: View citations in EconPapers (1)

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