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Regulation, Innovation, and the Introduction of New Telecommunications Services

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Author Info
Prieger, James (U of California, Davis)

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Abstract

I examine the effects of FCC regulation on the innovation and introduction of advanced telecommunications services in the U.S. An interim of lighter regulation provides an "experiment" to test the regulatory regime's impact on innovation. The econometric model comprises an arrival process (for service innovation) followed by a duration process (for regulatory delay). The number of services the firms created during the interim is 60-99% higher than the model predicts they would have if the stricter regulation had still been in place. Overall, firms would have introduced 62% more services to consumers during the study period if the regulation had not been in place.

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Paper provided by University of California at Davis, Department of Economics in its series Working Papers with number 00-8.

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Date of creation: Nov 2000
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Handle: RePEc:ecl:ucdeco:00-8

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Find related papers by JEL classification:
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. 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. [Downloadable!] (restricted)
  2. James E. Prieger, 2002. "Regulation, Innovation, and the Introduction of New Telecommunications Services," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 704-715, 07. [Downloadable!] (restricted)
    Other versions:
  3. Paul Joskow & Nancy L. Rose, 1987. "The Effects of Economic Regulation," Working papers 447, Massachusetts Institute of Technology (MIT), Department of Economics.
    Other versions:
  4. Daniel, Joseph I, 1995. "Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues," Econometrica, Econometric Society, vol. 63(2), pages 327-70, March. [Downloadable!] (restricted)
  5. 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, Blackwell Publishing, vol. 4(2), pages 187-236, Summer.
  6. 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. [Downloadable!] (restricted)
  7. Mulligan, James G. & Hoffman, Saul D., 1998. "Daycare Quality and Regulation: A Queuing-Theoretic Approach," Economics of Education Review, Elsevier, vol. 17(1), pages 1-13, February. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
  9. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc. [Downloadable!]
  10. Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997-1), pages 1-54. [Downloadable!]
  11. Braeutigam. Ronald R., 1979. "The Effect of Uncertainty in Regulatory Delay on the Rate of Innovation," Working Papers 266, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  12. Gilbert, Richard J & Newbery, David M G, 1982. "Preemptive Patenting and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 72(3), pages 514-26, June. [Downloadable!] (restricted)
  13. Gourieroux, C. & Visser, M., 1997. "A count data model with unobserved heterogeneity," Journal of Econometrics, Elsevier, vol. 79(2), pages 247-268, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Prieger, James, 2000. "Regulation, Innovation, and the Introduction of New Telecommunications Services," Working Papers 00-8, University of California at Davis, Department of Economics. [Downloadable!]
    Other versions:
  2. Prieger, James, 2000. "Telecommunications Regulation and New Services: A Case Study at the State Level," Working Papers 00-11, University of California at Davis, Department of Economics. [Downloadable!]
    Other versions:
  3. Paul de Bijl & Martin Peitz, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," CPB Discussion Papers 108, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  4. James Prieger, 2008. "Product innovation, signaling, and endogenous regulatory delay," Journal of Regulatory Economics, Springer, vol. 34(2), pages 95-118, October. [Downloadable!] (restricted)
  5. James E. Prieger, 2004. "The Impacts of the Americans with Disabilities Act on the Entry and Exit of Retail Firms," Econometric Society 2004 North American Winter Meetings 589, Econometric Society. [Downloadable!]
    Other versions:
  6. Prieger, James, 2005. "Endogenous Regulatory Delay and the Timing of Product Innovation," Working Papers 05-4, University of California at Davis, Department of Economics. [Downloadable!]
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