| Article ID: | iaor19982749 |
| Country: | South Korea |
| Volume: | 22 |
| Issue: | 2 |
| Start Page Number: | 169 |
| End Page Number: | 180 |
| Publication Date: | Jun 1997 |
| Journal: | Journal of the Korean ORMS Society |
| Authors: | Oh Hyung-Sik, Lee Deok-Joo |
| Keywords: | telecommunications, Korea |
In this study, we estimate the multi-service cost function of Korea Telecom in order to characterize the cost structure of the telecommunication industry in Korea. By examining the cost function of Korea Telecom, we show that telecommunication costs of Korea Telecom are subadditive. Therefore, we conclude that a natural monopoly exists in the telecommunication industry in Korea.