Abstract
We undertake a study where we examine changes in the profitability, productivity and price recovery of firms in the U.S. telecommunications industry over a sixteen-year period. We assess the performance of thirty-three major companies in the local-exchange sector over six time periods 1975, 1978, 1981, 1984, 1987 and 1990, using a performance analysis model which disaggregates the profitability measure into two components: productivity and price recovery. We demonstrate the computation of performance using this technique. Our study indicates that the opening up of markets has had a significant impact on different dimensions of performance in the telecommunications industry, also validating a number of theoretical assumptions about the impact that industry changes are expected to have on firms.
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Banker, R.D., Chang, HH. & Majumdar, S.K. Profitability, productivity and price recovery patterns in the U.S. telecommunications industry. Rev Ind Organ 11, 1–17 (1996). https://doi.org/10.1007/BF00163594
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DOI: https://doi.org/10.1007/BF00163594