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Competitive Considerations In Cable Television Franchising

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  • BRUCE M. OWEN
  • PETER R. GREENHALGH

Abstract

Franchising and renewing of franchises for cable television systems is an important urban policy issue. Of particular interest is whether franchise authorities ought to grant more than one franchise to provide cable service in a given area. This paper reports results of an empirical investigation into the cost structure of large, modern, urban cable systems. We find modest economies of scale in dimensions relevant to the feasibility of direct competition. The economies are not so large as to rule out the possibility that competition…whether direct or potential…can be an important disciplinary force in the marketplace. Copyright 1986 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 4 (1986)
Issue (Month): 2 (04)
Pages: 69-79

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Handle: RePEc:bla:coecpo:v:4:y:1986:i:2:p:69-79

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Cited by:
  1. Donald J. Boudreaux and Robert B. Ekelund, 1994. "Cable Regulation," Cato Journal, Cato Journal, Cato Institute, vol. 14(1), pages 87-107, Spring/Su.
  2. John S. Ying & Mary T. Kelly, 2007. "Testing the Effectiveness of Regulation and Competition on Cable Television Rates," Working Papers 07-07, University of Delaware, Department of Economics.
  3. Diane Bruce Anstine, 2001. "How Much Will Consumers Pay? A Hedonic Analysis of the Cable Television Industry," Review of Industrial Organization, Springer, vol. 19(2), pages 129-147, September.

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