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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Is Swiss Telecommunications a Natural Monopoly? An Evaluation of Empirical Evidence
Organization Unit
Authors
  • Stefan Buehler
Language
  • English
Institution University of Zurich
Series Name Working paper series / Socioeconomic Institute
Number No. 1
Date 2000
Abstract Text Based upon time series data published by PTT prior to regulatory reform, this paper investigates whether Swiss telecommunications qualify as a natural monopoly. Employing the subadditivity concept for multiproduct industries, alternative specifications of quadratic cost functions are estimated. The results of these estimations are ambiguous and demonstrate the difficulty of empirically substantiating a natural monoply claim. It is argued that the natural monopoly concept is of limited usefulness for informing policy decisions.
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