TY - JOUR
T1 - The changing structure of cost and demand for the U.S. telecommunications industry
AU - Nadiri, M. Ishaq
AU - Nandi, Banani
N1 - Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 1997/12/1
Y1 - 1997/12/1
N2 - This paper formulates a multiproduct structural model to examine the evolution of the structures of production and demand and their dynamic interaction, over an extended period, 1935-1987, in the U.S. telecommunications industry. We estimate the degree of scale economies, cost elasticities, input price elasticities and the determinants of demand for outputs and for various factors of production. The contributions of the quasi-fixed inputs, such as R&D and physical capital, in the evolution of this industry are evaluated. A number of important issues like the changing characteristics of demand for and cost of local and toll services and the variation of price-cost margin over time are examined under different economic conditions, market structures and regulatory environments. We also analyze the effects of the 1984 divestiture of the Bell System on the cost structure, employment and capital formation of the U.S. telecommunications industry.
AB - This paper formulates a multiproduct structural model to examine the evolution of the structures of production and demand and their dynamic interaction, over an extended period, 1935-1987, in the U.S. telecommunications industry. We estimate the degree of scale economies, cost elasticities, input price elasticities and the determinants of demand for outputs and for various factors of production. The contributions of the quasi-fixed inputs, such as R&D and physical capital, in the evolution of this industry are evaluated. A number of important issues like the changing characteristics of demand for and cost of local and toll services and the variation of price-cost margin over time are examined under different economic conditions, market structures and regulatory environments. We also analyze the effects of the 1984 divestiture of the Bell System on the cost structure, employment and capital formation of the U.S. telecommunications industry.
KW - Cost of production
KW - Rates of return
KW - Telecommunications
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U2 - 10.1016/S0167-6245(97)00017-6
DO - 10.1016/S0167-6245(97)00017-6
M3 - Article
AN - SCOPUS:0031421463
VL - 9
SP - 319
EP - 347
JO - Information Economics and Policy
JF - Information Economics and Policy
SN - 0167-6245
IS - 4
ER -