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The impact of the regulation of the cable television industry: the effect on quality-adjusted cable television prices

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  • Diane Bruce Anstine
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    Abstract

    Between the mid-1980s and early 1990s, cable television rates increased substantially. Simple price comparisons over the regulated and deregulated eras are difficult as the programming changed simultaneously. Using a modified hedonic framework to allow for the lack of competition on the supply side of the industry, this paper imputes the price for regulation era cable packages using consumers' estimated willingness to pay for individual satellite networks during the unregulated period. Then a 'quality adjusted' price for the cable package offered in 1985 is estimated. On average, regulation benefited consumers by keeping prices below monopolist's profit maximizing price.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684042000229523
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 36 (2004)
    Issue (Month): 8 ()
    Pages: 793-802

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    Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:793-802

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    Web page: http://www.tandfonline.com/RAEC20

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    Web: http://www.tandfonline.com/pricing/journal/RAEC20

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    1. Beil, Richard O, Jr, et al, 1993. "Competition and the Price of Municipal Cable Television Services: An Empirical Study," Journal of Regulatory Economics, Springer, vol. 5(4), pages 401-15, December.
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    Cited by:
    1. John S. Ying & Mary T. Kelly, 2007. "Testing the Effectiveness of Regulation and Competition on Cable Television Rates," Working Papers 07-07, University of Delaware, Department of Economics.
    2. Naoki Watanabe & Ryo Nakajima & Takanori Ida, 2010. "Quality-Adjusted Prices of Japanese Mobile Phone Handsets and Carriers’ Strategies," Review of Industrial Organization, Springer, vol. 36(4), pages 391-412, June.

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