The proposed merger of ATandT and T-Mobile: Are there unexhausted scale economies in U.S. mobile telephony Reportar como inadecuado




The proposed merger of ATandT and T-Mobile: Are there unexhausted scale economies in U.S. mobile telephony - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

Abstract

From the beginning, the debate on the likely results of the proposed acquisition of T-Mobile USA by ATandT focused more on the claims of the parties that -immense- merger efficiencies would overwhelm any apparent losses of competition than on the presence or absence of those losses, and the factors that might affect them, such as market definition. The companies based their -economic model- of the merger on estimates of efficiencies on ATandT’s -engineering model-, without addressing the credibility of the results of the latter in the context of the economics literature on the telecommunications sector. In this paper we first argue that the economics literature on economies of scale especially and economies of density in mobile telephony suggests caution in expecting such massive cost reductions from increasing the size of an already very large firm. We then present new econometric evidence from an international data base supporting the notion that most large mobile telephone service providers have reached the point of constant or even rarely declining returns to scale.



Item Type: MPRA Paper -

Original Title: The proposed merger of ATandT and T-Mobile: Are there unexhausted scale economies in U.S. mobile telephony?-

Language: English-

Keywords: merger efficiencies; economies of scale; economies of density; mobile telephony; antitrust; stochastic frontier analysis-

Subjects: L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L96 - TelecommunicationsK - Law and Economics > K2 - Regulation and Business Law > K23 - Regulated Industries and Administrative LawK - Law and Economics > K2 - Regulation and Business Law > K21 - Antitrust LawD - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; CapacityL - Industrial Organization > L4 - Antitrust Issues and Policies > L40 - General-





Autor: Li, Yan

Fuente: https://mpra.ub.uni-muenchen.de/39043/







Documentos relacionados