Advanced Search
MyIDEAS: Login to save this article or follow this journal

Demand, Pricing, and Regulation: Evidence from the Cable TV Industry

Contents:

Author Info

  • John W. Mayo
  • Yasuji Otsuka

Abstract

Subsequent to the nationwide deregulation of the cable TV industry, a number of questions have been raised concerning the conduct of cable firms. Answers to these questions turn upon a fundamental set of issues regarding the economic relationships of demand, pricing, and regulation. In this article, we empirically examine these relationships for the period prior to deregulation. A number of basic findings emerge. Among these, we find that the demand for basic cable service ranges from being generally inelastic in rural areas to elastic in large urban markets. The elasticity of demand for pay cable services is typically well in excess of unity. Also, while regulation did not lead to economically efficient (marginal cost) prices for basic cable service, it did act to keep prices below monopoly levels. Moreover, our examination reveals some significant differences in the effectiveness of the various types of regulation practiced in the pre-deregulation period.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://links.jstor.org/sici?sici=0741-6261%28199123%2922%3A3%3C396%3ADPAREF%3E2.0.CO%3B2-X&origin=repec
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 22 (1991)
Issue (Month): 3 (Autumn)
Pages: 396-410

as in new window
Handle: RePEc:rje:randje:v:22:y:1991:i:autumn:p:396-410

Contact details of provider:
Web page: http://www.rje.org

Order Information:
Web: https://editorialexpress.com/cgi-bin/rje_online.cgi

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Mary T. Kelly & John S. Ying, 2013. "Testing the Effectiveness of Regulation and Competition on Cable Television Rates," Working Papers, University of Delaware, Department of Economics 13-06, University of Delaware, Department of Economics.
  2. Tomaso Duso & Astrid Jung, 2002. "Market Conduct and Endogenous Lobbying: Evidence from the U.S. Mobile Telecommunications Industry," CIG Working Papers, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) FS IV 02-35, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  3. Robert Seamans, 2008. "Pricing and Multi-Market Contact in the Cable TV Industry," Working Papers, NET Institute 08-13, NET Institute.
  4. Mary T. Kelly & John S. Ying, 2009. "Testing the Effectiveness of Regulation and Competition on Cable Television Rates," Villanova School of Business Department of Economics and Statistics Working Paper Series, Villanova School of Business Department of Economics and Statistics 3, Villanova School of Business Department of Economics and Statistics.
  5. Yasuji Otsuka & Bradley Braun, 2003. "Price Cap Regulation in the Cable Television Industry: Why was the Demand Stagnant?," Journal of Industry, Competition and Trade, Springer, Springer, vol. 3(1), pages 41-55, March.
  6. Alejandro Diaz-Bautista, 2005. "Regional Cluster Analysis in the Mexican Telecommunications Sector. Impact of Economies of Agglomeration, Clusters and networking in medium-sized Mexican Telecommunication firms," Urban/Regional, EconWPA 0511013, EconWPA.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:22:y:1991:i:autumn:p:396-410. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.