| Summary: | 碩士 === 淡江大學 === 產業經濟學系碩士班 === 93 === The principal aim of this paper is to estimate a stochastic frontier cost function and an inefficiency model of the cable television industries in Taiwan .Furthermore,using the results to analyze the cost structure in order to assess economies of scale and density .Eventually, defining the optimal size of the firms and comparing their efficiency with those firms.
For this purpose, we use the methodology proposed by Battese and Coelli(1995), based on panel data of 61 cable television firms operating over the period 2001-2003. The results reveal that the scale economies do not exist but exhibit the density economies in Taiwan’s cable television industries. Secondly, we find that the MSO firms are more efficient than the independent firms and all of them show the advancement of technology. Finally, based on the estimation of a stochastic cost frontier, we find that optimal scale of Taiwan’s cable industries should be accommodated to 22 firms and on average, the service of one firm is approximately 186,660 subscribers.
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