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| Author: | Gasmi, F. Laffont, J. Sharkey, W. |
| Title: | Empirical evaluation of regulatory regimes in local telecommunications markets |
| Journal: | Journal of Economics and Management Strategy
1999 : SPRING, VOL. 8:1, p. 61-93 |
| Index terms: | MANAGEMENT STRATEGY TELECOMMUNICATIONS INDUSTRY |
| Language: | eng |
| Abstract: | This paper relies on an engineering optimization model of the local telecommunication exchange network to calibrate the functions entering various regulatory mechanisms, from both traditional and modern (incentive) regulation, and evaluate their relative performance. The engineering process model is used to generate data, which are econometrically synthesized in a translog economic cost function. Using this estimated cost function and some empirical and institutional information on market and regulatory conditions, the authors then calibrate demand, social-surplus, and disutility-of-(cost-reducing)-effort functions. |
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