The determinants of market share for the `dominant firm' in telecommunications |
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Authors: | Franklin G Mixon Jr Yu Hsing |
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Institution: | aDepartment of Economics and International Business, University of Southern Mississippi, Hattiesburg, MS 39406, USA;bDepartment of Economics and Business Research, Southeastern Louisiana University, Hammond, LA 70402, USA |
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Abstract: | The present study examines the factors affecting the market share of the dominant firm in long-distance telecommunications, AT&T. A theoretical model is specified which includes competing long-distance rates (e.g., those of MCI and U.S. Sprint), price-cap regulation and advertising expenditures as determinants of the dominant firm's market share. Using intercity long-distance carrier charges for 1984–1994, this study points out the importance of AT&T's own rate structure, those of its major competitors, and government regulations in determining AT&T's market share over time. |
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Keywords: | Oligopoly Market shares Telecommunications Price caps Game theory |
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