A Goal Programming/Constrained Regression Review of the Bell System Breakup.
Abstract
The recently implemented U.S. court decision to break up Bell (=American Telephone & Telegraph Co.) to accord with U.S. anti-trust laws is also proving to be influential in other countries. Econometric studies commissioned by the Anti-Trust Division of the U.S. Justice Department used flexible functional forms to demonstrate that the evidence failed to show that Bell was a natural monopoly. This same evidence is reviewed via goal programming/constrained regression models to reach an exactly opposite conclusion. The two approaches are compared and shortcomings and deficiencies in the econometric modeling, statistics and statistical (optimization) principles utilized in Bell System studies are examined in detail. Additional keywords: Cost models; Econometric models; Economic and statistical tests; Tables(data); Operations research. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1985
- Accession Number
- ADA159839
Entities
People
- Abraham Charnes
- T. Sueyoshi
- William W. Cooper
Organizations
- University of Texas at Austin