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The Evolution of “Competition”: Lessons for 21st Century Telecommunications Policy

Author

Listed:
  • Amanda B. Delp

    (Georgetown University)

  • John W. Mayo

    (Georgetown University)

Abstract

For over a century, assessments of competition or the lack thereof have been central to how public policy treats the telecommunications industry. This centrality continues today. Yet, numerous foundational questions about this concept persist. In this paper, we chronicle how the definition of “competition” has evolved in economics and has been applied in the communications arena. The academic literature on competition hits an important inflection point in the mid-20th century with the development of “workable competition”: a term that is equated to “effective competition.” We find that while the concept of “effective competition” is central to policy formation at the FCC, the Commission’s own applications of “effective competition” are inconsistent. Given the centrality of this concept, and its inconsistent applications to date, we draw upon the seminal contributions to the development of the notion of “effective competition” to offer a modern definition suitable for application in 21st century communications markets.

Suggested Citation

  • Amanda B. Delp & John W. Mayo, 2017. "The Evolution of “Competition”: Lessons for 21st Century Telecommunications Policy," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(4), pages 393-416, June.
    • Handle: RePEc:kap:revind:v:50:y:2017:i:4:d:10.1007_s11151-016-9553-9
    DOI: 10.1007/s11151-016-9553-9
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    References listed on IDEAS

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    1. Jan Boone, 2008. "A New Way to Measure Competition," Economic Journal, Royal Economic Society, vol. 118(531), pages 1245-1261, August.
    2. Paul J. McNulty, 1967. "A Note on the History of Perfect Competition," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 395-395.
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    4. Schmutzler, Armin, 2013. "Competition and investment — A unified approach," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 477-487.
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    6. G. J. Stigler, 1972. "Perfect Competition, Historically Contemplated," Palgrave Macmillan Books, in: Charles K. Rowley (ed.), Readings in Industrial Economics, chapter 7, pages 105-130, Palgrave Macmillan.
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    Cited by:

    1. Lehr, William & Sicker, Douglas, 2017. "Communications Act 2021," 28th European Regional ITS Conference, Passau 2017 169478, International Telecommunications Society (ITS).
    2. Winseck, Dwayne & Pooley, Jefferson, 2017. "A Curious Tale of Economics and Common Carriage (Net Neutrality) at the FCC: A Reply to Faulhaber, Singer, and Urschel," MediArXiv ymkx4, Center for Open Science.
    3. Bukvić, Rajko, 2019. "Evolution and Current Status of the Competitive Environment in the Serbian Banking Sector: Concentration Indices Analysis," MPRA Paper 98341, University Library of Munich, Germany, revised 2019.
    4. Marjit, Sugata & Ray, Moushakhi, 2021. "Competition, asset build up and export incentives: The role of imperfect credit market," Journal of Asian Economics, Elsevier, vol. 77(C).
    5. Hooton, Christopher Alex, 2020. "Testing the economics of the net neutrality debate," Telecommunications Policy, Elsevier, vol. 44(5).

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