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