Beruflich Dokumente
Kultur Dokumente
Rating Criteria
reviewed by Todd Chambers
Theoretical Approach/ The economic landscape of telecommu- ics. Specifically, most of the chapters
Methodology nications industries is changing at both focus on the core issues in industrial or-
Has the book a theoretical ap- the local and global level. Shifts in regu- ganization economics. In the Structure
proach? Is the applied method- latory practices, technological innova- section, the editors have selected excel-
ology useful for the author’s ob- tions and consumer demand have al- lent chapters ranging from the histori-
jectives? Is the context of the tered the traditional structures of the cal development of telecommunications
information clear? Is the publi- telephone, cable and related telecom- industries to the effect of monopoly and
cation positioned within exist- munication network industries. In competition on various pricing mecha-
ing literature? Are the terms their Handbook of Telecommunica- nism. The Regulation section delivers
clearly defined? Is the informa- tions Economics, Volume 1, editors Mar- technical instruction and examples of
tion consistent? tin Cave, Sumit Majumdar and Ingo the various effects of different regula-
Vogelsang have collected a series of tory frameworks on such issues as access
Structure chapters examining the structure, regu- pricing, interconnection and universal
How does the chosen structure lation and competition in the telecom- service. The final section, Competition,
help to understand the informa- munications industry. Overall, this is devoted to theoretical and practical
tion? book provides the reader with an excel- explanations of competition in the long
lent historical and current summary of distance, wireless, mobile telephone
Depth of the Analysis the economic issues facing network in- and local networks industries.
Is the content sufficient to ex- dustries such as local exchange carriers
plain the described phenom- (LECs), cable television providers, mobile Although the book is filled with valu-
enon? telephones, Internet Service Providers able explanations about the economics
(ISPs), long distance telephone compa- of telecommunications, there are three
Contribution nies and others. This review will provide chapters that are noteworthy. In a chap-
to New Knowledge a brief summary of the book and its ter called “Network Effects,” Liebowitz and
How does it contribute to exist- findings as well as highlighting some of Margolis explain the literature concern-
ing knowledge? Does it use up- the implications for future research in ing network externalities and offer a
to-date data? the economics of telecommunications. detailed analysis of the difference be-
tween network effects and externalities.
Applicability From a research perspective, the Hand- Positive and negative, direct and indi-
Is the content useful? Does it book focuses on theory and research rect network effects can and do have
help in solving practical prob- from the area of industrial organiza- interesting policy implications for the
lems? tion economics. Throughout the book, future of telecommunications net-
the editors have included extensive works. In general, network externalities
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Clarity and Style chapters that highlight issues of both have been defined “as the number of users
of Writing telecommunications and economics. of a product or increases, the value of the
Are the ideas presented in a From an organization perspective, the product or network to the other users
clear and comprehensible way? textbook is divided into three sections changes” (p. 76). The authors point to the
Are specific and illustrative ex- – Structure, Regulation and Competi- fact that networks, like individuals, ‘in-
amples given? Is the informa- tion. In each of the sections, there are ternalize’ network effects which make
tion concise? thorough explanations of the relevant them no longer ‘external’. The authors
topics in telecommunications econom- conclude this chapter by highlighting