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Corrado Andini
''Efficiency vs. market-power effects in the mobile-voice industry''
( 2011, Vol. 31 No.1 )
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
JEL: L9 - Industry Studies: Transportation and Utilities: General
C2 - Single Equation Models; Single Variables: General
Manuscript Received : Dec 09 2010 Manuscript Accepted : Jan 04 2011

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