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Incentive Regulation and Telecommunications Service Quality

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Author Info

  • Chunrong AI

    ()

  • Salvador Martinez

    ()

  • David Sappington

    ()

Abstract

We examine the impact of incentive regulation—price regulation and earnings sharing regulation—on retail service quality in the U.S. telecommunications industry between 1991 and 2002. We find that incentive regulation is associated with significantly higher service quality on several dimensions (e.g., more rapid installation of new telephone service, fewer trouble reports, and increased customer satisfaction) but significantly lower quality on some dimensions (fewer installation commitments met and longer delays in resolving reported service problems) Copyright Kluwer Academic Publishers 2004

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File URL: http://hdl.handle.net/10.1007/s11149-004-7551-6
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Bibliographic Info

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

Volume (Year): 26 (2004)
Issue (Month): 3 (08)
Pages: 263-285

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Handle: RePEc:kap:regeco:v:26:y:2004:i:3:p:263-285

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

Related research

Keywords: service quality; incentive regulation; telecommunications;

References

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  1. Jeffrey I. Bernstein & David E. M. Sappington, 1998. "Setting the X Factor in Price Cap Regulation Plans," NBER Working Papers 6622, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Paul L Joskow, 2005. "Incentive Regulation In Theory And Practice - Electricity Distribution And Transmission Networks," Working Papers 0514, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
  2. Francesc Trillas & Miguel Angel Montoya, 2008. "The degree of commitment to regulator independence: measurement and impact," Hacienda Pública Española, IEF, vol. 185(2), pages 89-114, July.
  3. Estache, Antonio & Goicoechea, Ana & Manacorda, Marco, 2006. "Telecommunications performance, reforms, and governance," Policy Research Working Paper Series 3822, The World Bank.
  4. Guerriero, Carmine, 2013. "The political economy of incentive regulation: Theory and evidence from US states," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 91-107.
  5. Anna Ter-Martirosyan & John Kwoka, 2010. "Incentive regulation, service quality, and standards in U.S. electricity distribution," Journal of Regulatory Economics, Springer, vol. 38(3), pages 258-273, December.
  6. Ai, Chunrong & Sappington, David E.M., 2005. "Reviewing the impact of incentive regulation on U.S. telephone service quality," Utilities Policy, Elsevier, vol. 13(3), pages 201-210, September.
  7. Eva Jansson, 0. "Deregulation, property rights, and legal system," European Journal of Law and Economics, Springer, vol. 0, pages 1-25.
  8. Vladimir Hlasny, 2008. "The impact of restructuring and deregulation on gas rates," Journal of Regulatory Economics, Springer, vol. 34(1), pages 27-52, August.
  9. David Sappington & Dennis Weisman, 2010. "Price cap regulation: what have we learned from 25 years of experience in the telecommunications industry?," Journal of Regulatory Economics, Springer, vol. 38(3), pages 227-257, December.
  10. Iossa, Elisabetta & Stroffolini, Francesca, 2005. "Price cap regulation, revenue sharing and information acquisition," Information Economics and Policy, Elsevier, vol. 17(2), pages 217-230, March.
  11. 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.
  12. Carlos Perez Montes, 2012. "Regulatory bias in the price structure of local telephone services," Banco de Espa�a Working Papers 1201, Banco de Espa�a.

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