Abstract
The purpose of this study is to analyze the cost structure of a sample of Italian wastecollection firms in order to assess economies of scale and density and, therefore, definethe optimal size of the firms. A total and a variable translog cost function were estimated using panel data for a sample of 30 firms operating at the provincial level over the period 1991–1995.
The empirical evidence suggests that franchised monopoly, rather than side-by-sidecompetition, is the most efficient form of production organization in the waste collection industry. Further, the majority of firms are not operating at optimal scale.
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Antonioli, B., Filippini, M. Optimal Size in the Waste Collection Sector. Review of Industrial Organization 20, 239–252 (2002). https://doi.org/10.1023/A:1015043524679
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DOI: https://doi.org/10.1023/A:1015043524679