Explaining the Choice among Regulatory Plans in the U.S. Telecommunications Industry
AbstractWe investigate why different states in the United States choose different regulatory plans in their telecommunications industry. We present a simple theoretical model and an empirical analysis of the issue. We find that a state is more likely to replace rate-of-return regulation with incentive regulation when: (1) residential basic local service rates have historically been relatively high; (2) allowed earnings under rate-of-return regulation in the state have been either particularly high or particularly low; (3) the state's leaders tend to come from both major political parties, rather than from a single party; (4) the state's urban population is growing relatively rapidly; and (5) the bypass activity of competitors in the state is less pronounced. Copyright 1995 by MIT Press.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 4 (1995)
Issue (Month): 2 (Summer)
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Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
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- Stephen G. Donald & David E.M. Sappington, 1995. "Explaining the Choice Among Regulatory Plans in the U.S. Telecommunications Industry," Papers 0055, Boston University - Industry Studies Programme.
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- Dewenter, Ralf & Kruse, Jörn, 2010.
"Calling party pays or receiving party pays? The diffusion of mobile telephony with endogenous regulation,"
DICE Discussion Papers
10, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Dewenter, Ralf & Kruse, Jörn, 2011. "Calling party pays or receiving party pays? The diffusion of mobile telephony with endogenous regulation," Information Economics and Policy, Elsevier, vol. 23(1), pages 107-117, March.
- Gual Jordi & Trillas Francesc, 2006.
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- Gual, Jordi & Trillas, Francesc, 2006. "Telecommunications policies: Measurement and determinants," IESE Research Papers D/630, IESE Business School.
- Pérez Montes, Carlos, 2013. "Regulatory bias in the price structure of local telephone service," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 462-476.
- Weisman, Dennis L., 2002. "Is there 'Hope' for price cap regulation?," Information Economics and Policy, Elsevier, vol. 14(3), pages 349-370, September.
- Wimmer, Bradley S. & Rosston, Gregory L., 2005. "Local telephone rate structures: before and after the Act," Information Economics and Policy, Elsevier, vol. 17(1), pages 13-34, January.
- Toivanen, Otto, 2004. "Choosing Standards," Discussion Papers 937, The Research Institute of the Finnish Economy.
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