Efficiency versus social optimality: the case of telecommunications pricing

Article Abstract:

Adoption of a pricing policy that utilizes distributional objectives, aside from being efficiency-based, is feasible with regards to telecommunication pricing. Utilization of distributional objectives is achieved through consideration of usage patterns of low-income households and imposition of low charges to services that are often used. Telecommunication companies are advised to refrain from depending too much on access charges, in order to recover fixed costs, if optimal cross-subsidy policy is to be considered.

Models, Pricing

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The determinants of market share for the 'dominant firm' in telecommunications

Article Abstract:

Price-cap regulation and advertising expenses play vital roles in determining the market share of AT and T, a leading long-distance telecommunications company. The long-distance rates being imposed by AT and T and its major competitiors, such as MCI and US Sprint, also affect the market share of companies engaged in long-distance telecommunication. Government regulations, such as the price cap regulation, tend to be advantageous to consumers and lessen the dominance of a company.

Long Distance Telephone Svc, AT&T Corp., T, Market share

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The changing structure of cost and demand for the U.S. telecommunications industry

Article Abstract:

The elasticity of demand in the American telecommunications industry from 1935 to 1987 varied with regards to local service and toll service. The elasticity of demand for local service was inelastic when compared to toll service's. The demand in the telephone industry was also greatly affected by economic factors, such as the country's gross national product (GNP). The cost elasticity for local service, meanwhile, was higher compared to the cost elasticity of toll service.

Analysis, Demand (Economics), Cost (Economics), Costs (Economics)

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