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The Effects of Market Structure and Ownership on Prices and Service Offerings in the U.S. Cable Television Industry

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  • William M. Emmons III
  • Robin A. Prager

Abstract

This article provides empirical evidence on the effects of alternative market structures and ownership modes on prices and service offerings in the cable television industry. We analyze the underlying characteristics and behavior of competing versus monopoly operators on the one hand, and privately versus nonprivately owned operators on the other. We find that competition and nonprivate ownership are associated with lower prices for basic cable television service. We also find that cable television price and quality differentials vary with certain characteristics of competing operators, and that market structure and ownership status influence changes in price and quality over time.

Suggested Citation

  • William M. Emmons III & Robin A. Prager, 1997. "The Effects of Market Structure and Ownership on Prices and Service Offerings in the U.S. Cable Television Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 732-750, Winter.
  • Handle: RePEc:rje:randje:v:28:y:1997:i:winter:p:732-750
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    2. repec:eee:regeco:v:64:y:2017:i:c:p:117-136 is not listed on IDEAS
    3. 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.
    4. Snellman, Heli, 2006. "Automated teller machine network market structure and cash usage," Scientific Monographs, Bank of Finland, number 2006_038, November.
    5. Davis, Peter, 2005. "The Effect of Local Competition on Admission Prices in the U.S. Motion Picture Exhibition Market," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 677-708, October.
    6. repec:oup:jcomle:v:1:y:2005:i:4:p:679-705. is not listed on IDEAS
    7. Dieter Pennerstorfer, 2014. "Price and Quality Competition in Spatial Markets. The Case of Camping Sites," WIFO Working Papers 466, WIFO.
    8. Vishal Singh & Ting Zhu, 2008. "Pricing and Market Concentration in Oligopoly Markets," Marketing Science, INFORMS, vol. 27(6), pages 1020-1035, 11-12.

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