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| Fausto Hernández Trillo, Carlos Vladimir Ródriguez-Caballero and Daniel Ventosa-Santaulària |
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| ''Monopoly unveiled: Telecom breakups in the US and Mexico'' |
| ( 2025, Vol. 45 No.4 ) |
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| This paper examines the decline in market capitalization after a monopoly breakup to assess how financial markets value market power in the telecom sectors of the US (AT&T) and Mexico (AMX). Using univariate structural time series models, we estimate the firm's value without the breakup and compare it to post-divestiture values, revealing a 65% drop for AT&T and 32% for AMX. These findings highlight the sizeable impact of monopoly breakups on market capitalization. |
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| Keywords: Monopoly breakup, market power, firm value, AT&T, AMX |
JEL: G1 - General Financial Markets
L1 - Market Structure, Firm Strategy, and Market Performance: General |
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| Manuscript Received : Dec 19 2024 | | Manuscript Accepted : Dec 30 2025 |
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