Testing the Effectiveness of Regulation and Competition on Cable Television Rates
AbstractRegulation of the cable television industry was marked by remarkable periods of deregulation, re-regulation, and re-deregulation during the 1980s and 1990s. Using FCC firm-level survey data spanning 1993 to 2001, we model and econometrically estimate the effect of regulation and competition on cable rates. Our calculations indicate that while regulation lowered rates for small system operators, it raised them for medium and large systems. Meanwhile, competition consistently decreased rates from 5.6 to 8.8 percent, with even larger declines during periods of regulation. Our results suggest that competition is more effective than regulation in containing cable prices.
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Bibliographic InfoPaper provided by Villanova School of Business Department of Economics and Statistics in its series Villanova School of Business Department of Economics and Statistics Working Paper Series with number 3.
Date of creation: Apr 2009
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Web page: http://www.villanova.edu/business/facultyareas/economics/
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cable rates; regulation; competition;
Other versions of this item:
- 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.
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
- NEP-COM-2009-04-13 (Industrial Competition)
- NEP-IND-2009-04-13 (Industrial Organization)
- NEP-MIC-2009-04-13 (Microeconomics)
- NEP-REG-2009-04-13 (Regulation)
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