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Price, Programming and Potential Competition in US Cable Television Markets

Author

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  • Scott Savage

    ()

  • Michael Wirth

    ()

Abstract

Potential competition in the US cable television industry is empirically examined for 385 markets. Predicted entry probabilities are included in a supply-demand model to permit empirical investigation of the effect of potential competition on incumbent cable operator’s price and channel programming decisions. Estimation results show incumbents offer more channels to consumers in markets facing greater potential competition from broadband service provider (BSP) wireline overbuilders and/or incumbent local exchange carriers. In particular, when the probability of entry rises to about 42 the average cable system provides six more channels, and price per channel declines from US$ 0.77 to US$ 0.66. Copyright Springer Science+Business Media, Inc. 2005

Suggested Citation

  • Scott Savage & Michael Wirth, 2005. "Price, Programming and Potential Competition in US Cable Television Markets," Journal of Regulatory Economics, Springer, vol. 27(1), pages 25-46, September.
  • Handle: RePEc:kap:regeco:v:27:y:2005:i:1:p:25-46
    DOI: 10.1007/s11149-004-4417-x
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    File URL: http://hdl.handle.net/10.1007/s11149-004-4417-x
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    Citations

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    Cited by:

    1. Chou, Yuntsai, 2014. "The stalemate of cable digital switchover: A study of competition effects and deregulation," Telecommunications Policy, Elsevier, vol. 38(4), pages 393-405.
    2. Pearcy, Jason & Savage, Scott J., 2015. "Actual and potential competition in international telecommunications," International Journal of Industrial Organization, Elsevier, vol. 42(C), pages 94-105.
    3. repec:bla:jindec:v:65:y:2017:i:3:p:510-558 is not listed on IDEAS
    4. Christiaan Hogendorn, 2007. "Broadband Internet: net neutrality versus open access," International Economics and Economic Policy, Springer, vol. 4(2), pages 185-208, August.
    5. Robert C. Seamans, 2012. "Fighting City Hall: Entry Deterrence and Technology Upgrades in Cable TV Markets," Management Science, INFORMS, vol. 58(3), pages 461-475, March.
    6. repec:eee:iepoli:v:40:y:2017:i:c:p:13-20 is not listed on IDEAS

    More about this item

    Keywords

    cable television; competition; entry; price; quality;

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