Review of Industrial Organization

, Volume 11, Issue 1, pp 1–17 | Cite as

Profitability, productivity and price recovery patterns in the U.S. telecommunications industry

  • R. D. Banker
  • H.-H. Chang
  • S. K. Majumdar
Article

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.

Key words

Productivity performance analysis telecommunications 

JEL Classification

L96 (Telecommunications) M40 (Accounting: General) 
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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • R. D. Banker
    • 1
  • H.-H. Chang
    • 2
  • S. K. Majumdar
    • 3
  1. 1.Carlson School of ManagementUniversity of MinnesotaMinneapolisU.S.A.
  2. 2.Hsi-hui Chang, College of CommerceNational Chengchi UniversityTaipeiTaiwan
  3. 3.School of Business AdministrationThe University of MichiganAnn ArborU.S.A.

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