Optimal firm size and patterns of returns to scaleamong the local exchange companies in the U.S.telecommunications industry are estimated for theyears: 1975, 1978, 1981, 1984, 1987 and 1990. Theindependent companies display increasing returns toscale, while the Baby Bells display constant ordecreasing returns to scale. The independentcompanies operate at a scale smaller than optimalsize, while the Baby Bells operate at a scale greaterthan optimal size. Efficiencies can be gained byindustry restructuring, by allowing independents toexpand their size while the Baby Bells can bedownsized to create smaller units.
Review of Industrial Organization – Springer Journals
Published: Oct 6, 2004
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
All the latest content is available, no embargo periods.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud