Economies of Scope in the Local Telephone Exchange Market

David Gabel and David Kennet ()

Journal of Regulatory Economics, 1994, vol. 6, issue 4, 98 pages

Abstract: Using cost data generated by an optimization model, we evaluate the degree of economies of scope in the local telephone exchange market. We find that economies of scope between switched and non-switched services are a decreasing function of customer density, while there are strong economies of scope, regardless of customer density, within the switched telephone market. Copyright 1994 by Kluwer Academic Publishers

Date: 1994
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