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Monopoly Quality Degradation and Regulation in Cable Television

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Author Info

  • Crawford, Gregory S
  • Shum, Matthew

Abstract

Using an empirical framework based on the Mussa-Rosen model of monopoly quality choice, we calculate the degree of quality degradation in cable television markets and the impact of regulation on those choices. We find lower bounds of quality degradation ranging from 11 to 45 percent of offered service qualities. Furthermore, cable operators in markets with local regulatory oversight offer significantly higher quality, less degradation, and greater quality per dollar, despite higher prices.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Law and Economics.

Volume (Year): 50 (2007)
Issue (Month): 1 (February)
Pages: 181-219

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Handle: RePEc:ucp:jlawec:y:2007:v:50:i:1:p:181-219

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Web page: http://www.journals.uchicago.edu/JLE/

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Cited by:
  1. Chenghuan Sean Chu, 2008. "The effect of satellite entry on product quality for cable television," Finance and Economics Discussion Series 2008-12, Board of Governors of the Federal Reserve System (U.S.).
  2. Savage, Ian, 2010. "The dynamics of fare and frequency choice in urban transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(10), pages 815-829, December.
  3. Benjamin Reed Shiller, 2013. "First Degree Price Discrimination Using Big Data," Working Papers 58, Brandeis University, Department of Economics and International Businesss School, revised Sep 2013.
  4. Xavier d'Haultfoeuille & Philippe Février, 2011. "The Provision of Wage Incentives : A Structural Estimation Using Contracts Variation," Working Papers 2011-29, Centre de Recherche en Economie et Statistique.
  5. Mary T. Kelly & John S. Ying, 2013. "Testing the Effectiveness of Regulation and Competition on Cable Television Rates," Working Papers 13-06, University of Delaware, Department of Economics.
  6. Krämer, Jan & Wiewiorra, Lukas, 2009. "Network neutrality and congestion sensitive content providers: Implications for content variety, broadband investment and regulation," MPRA Paper 42519, University Library of Munich, Germany, revised 15 Jan 2012.
  7. Xavier d'Haultfoeuille & Philippe Février, 2010. "Identification of a Class of Adverse Selection Models with Contracts Variation," Working Papers 2011-27, Centre de Recherche en Economie et Statistique.
  8. repec:pra:mprapa:42457 is not listed on IDEAS
  9. Liu, Yizao & Shen, Shu, 2012. "Price Discrimination with Asymmetric Firms: The Case of the U.S. Carbonated Soft Drinks Market," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124619, Agricultural and Applied Economics Association.

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