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Prices and Outputs under Cable TV Reregulation

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  • Hazlett, Thomas W

Abstract

Cable television reregulation in October 1992 did succeed in constraining subscriber bills about 9% below trend by October 1994. Yet, the growth rate of basic cable television subscribership fell sharply during the period of rate reductions. Only when real rates began rising in the period following October 1994--after an explicit relaxation of controls--did reliable industry output measures return to the pre-regulation growth trend. These data suggest that rate regulation becomes substantially less viable as the complexity of the regulated good increases. Copyright 1997 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 12 (1997)
Issue (Month): 2 (September)
Pages: 173-95

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Handle: RePEc:kap:regeco:v:12:y:1997:i:2:p:173-95

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Web page: http://www.springerlink.com/link.asp?id=100298

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Cited by:
  1. Arthur Havenner & Thomas Hazlett & Zhiqiang Leng, 2001. "The Effects of Rate Regulation on Mean Returns and Non-Diversifiable Risk: The Case of Cable Television," Review of Industrial Organization, Springer, vol. 19(2), pages 149-164, September.
  2. Kasuga, Norihro & Manabu, Shishikura & Masanori, Kondo, 2007. "Platform Competition in Pay-TV Market," MPRA Paper 5694, University Library of Munich, Germany.

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