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Telecommunications Regulation and New Services: A Case Study at the State Level

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  • Prieger, James E

Abstract

This study introduces methodology to quantify the effects that regulation has on the innovation and the introduction of new products, and compares state-regulated services in Indiana under rate of return regulation (RoRR) and under alternative regulation. The econometric model comprises a count process (for innovation) followed by a duration process with selection (for regulatory delay). When the firm is released from RoRR, the rate of service creation triples and expected approval delays nearly disappear. The firm may have introduced up to 12 times as many services to consumers if the alternative regulation had been in place the entire time. Copyright 2001 by Kluwer Academic Publishers

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Bibliographic Info

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

Volume (Year): 20 (2001)
Issue (Month): 3 (November)
Pages: 285-305

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Handle: RePEc:kap:regeco:v:20:y:2001:i:3:p:285-305

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

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  1. Bonanno, Giacomo & Haworth, Barry, 1998. "Intensity of competition and the choice between product and process innovation," International Journal of Industrial Organization, Elsevier, vol. 16(4), pages 495-510, July.
  2. Sappington, David E. M. & Weisman, Dennis L., 1996. "Potential pitfalls in empirical investigations of the effects of incentive regulation plans in the telecommunications industry," Information Economics and Policy, Elsevier, vol. 8(2), pages 125-140, June.
  3. Greenstein, Shane & McMaster, Susan & Spiller, Pablo T, 1995. "The Effect of Incentive Regulation on Infrastructure Modernization: Local Exchange Companies' Deployment of Digital Technology," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 187-236, Summer.
  4. Ai, Chunrong & Sappington, David E M, 2002. "The Impact of State Incentive Regulation on the U.S. Telecommunications Industry," Journal of Regulatory Economics, Springer, vol. 22(2), pages 133-59, September.
  5. Barten, Anton P., 1997. "Annual report 1996," European Economic Review, Elsevier, vol. 41(3-5), pages 971-973, April.
  6. Quandt, Richard E., 1983. "Computational problems and methods," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 1, chapter 12, pages 699-764 Elsevier.
  7. James E. Prieger, . "Regulation, Innovation, and the introduction of new telecommunications services," Department of Economics 00-08, California Davis - Department of Economics.
  8. Cabral, Luis M B & Riordan, Michael H, 1989. "Incentives for Cost Reduction under Price Cap Regulation," Journal of Regulatory Economics, Springer, vol. 1(2), pages 93-102, June.
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Citations

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Cited by:
  1. Prieger, James E., 2004. "The Impact of the Americans with Disabilities Act on the Entry and Exit of Retail Firms," Working paper 325, Regulation2point0.
  2. Mark Frank, 2003. "An Empirical Analysis of Electricity Regulation on Technical Change in Texas," Review of Industrial Organization, Springer, vol. 22(4), pages 313-331, June.
  3. James Prieger, 2008. "Product innovation, signaling, and endogenous regulatory delay," Journal of Regulatory Economics, Springer, vol. 34(2), pages 95-118, October.
  4. James E. Prieger, 2005. "Estimation of a Simple Queuing System WithUnits-in-Service and Complete Data," Working Papers 535, University of California, Davis, Department of Economics.
  5. Prieger, James E., 2007. "Regulatory delay and the timing of product innovation," International Journal of Industrial Organization, Elsevier, vol. 25(2), pages 219-236, April.
  6. James E. Prieger, 2005. "Endogenous Regulatory Delay and the Timing of Product Innovation," Working Papers 54, University of California, Davis, Department of Economics.
  7. Bauer, Johannes M. & Shim, Woohyun, 2012. "Regulation and digital innovation: Theory and evidence," 23rd European Regional ITS Conference, Vienna 2012 60364, International Telecommunications Society (ITS).

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