Dominant carrier market power in US international telephone markets

An econometric model is used to examine market power in US international telephone markets. Lerner index estimates suggest AT&T's collection rate-cost margin was between 12% and 24% during 1991 to 1995. Although Lerner estimates imply deadweight welfare losses of up to US $261 million per a...

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Main Authors: Alleman, J., Madden, Gary, Savage, Scott
Format: Journal Article
Published: Routledge 2003
Online Access:http://hdl.handle.net/20.500.11937/3556
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author Alleman, J.
Madden, Gary
Savage, Scott
author_facet Alleman, J.
Madden, Gary
Savage, Scott
author_sort Alleman, J.
building Curtin Institutional Repository
collection Online Access
description An econometric model is used to examine market power in US international telephone markets. Lerner index estimates suggest AT&T's collection rate-cost margin was between 12% and 24% during 1991 to 1995. Although Lerner estimates imply deadweight welfare losses of up to US $261 million per annum, such losses are small compared to those from the inefficient pricing of international interconnection. Settlement rate-cost margins on US bilateral markets of approximately 89% translate into a US $4907 million transfer from consumers to carriers in 1995.
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spelling curtin-20.500.11937-35562017-09-13T16:02:57Z Dominant carrier market power in US international telephone markets Alleman, J. Madden, Gary Savage, Scott An econometric model is used to examine market power in US international telephone markets. Lerner index estimates suggest AT&T's collection rate-cost margin was between 12% and 24% during 1991 to 1995. Although Lerner estimates imply deadweight welfare losses of up to US $261 million per annum, such losses are small compared to those from the inefficient pricing of international interconnection. Settlement rate-cost margins on US bilateral markets of approximately 89% translate into a US $4907 million transfer from consumers to carriers in 1995. 2003 Journal Article http://hdl.handle.net/20.500.11937/3556 10.1080/0003684022000040957 Routledge fulltext
spellingShingle Alleman, J.
Madden, Gary
Savage, Scott
Dominant carrier market power in US international telephone markets
title Dominant carrier market power in US international telephone markets
title_full Dominant carrier market power in US international telephone markets
title_fullStr Dominant carrier market power in US international telephone markets
title_full_unstemmed Dominant carrier market power in US international telephone markets
title_short Dominant carrier market power in US international telephone markets
title_sort dominant carrier market power in us international telephone markets
url http://hdl.handle.net/20.500.11937/3556