Testing the Effectiveness of Regulation and Competition on Cable Television Rates
Regulation 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.
|Date of creation:||2013|
|Date of revision:|
|Publication status:||Forthcoming in Eastern Economic Journal|
|Contact details of provider:|| Postal: Purnell Hall, Newark, Delaware 19716|
Phone: (302) 831-2565
Fax: (302) 831-6968
Web page: http://lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
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.:
- Crawford, Gregory S & Shum, Matthew, 2007. "Monopoly Quality Degradation and Regulation in Cable Television," Journal of Law and Economics, University of Chicago Press, vol. 50(1), pages 181-219, February.
- Gregory S. Crawford, 2000. "The Impact of the 1992 Cable Act on Household Demand and Welfare," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 422-450, Autumn.
- Chipty, Tasneem, 1995. "Horizontal Integration for Bargaining Power: Evidence from the Cable Television Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 375-97, Summer.
- Hazlett, Thomas W, 1997. "Prices and Outputs under Cable TV Reregulation," Journal of Regulatory Economics, Springer, vol. 12(2), pages 173-95, September.
- Beil, Richard O, Jr, et al, 1993. "Competition and the Price of Municipal Cable Television Services: An Empirical Study," Journal of Regulatory Economics, Springer, vol. 5(4), pages 401-15, December.
- Adam B. Jaffe & David M. Kanter, 1990. "Market Power of Local Cable Television Franchises: Evidence from the Effects of Deregulation," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 226-234, Summer.
- Mary T. Kelly & John S. Ying, 2003. "On Measuring Competitive Viability and Monopoly Power in Cable: An Empirical Cost Approach," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 962-970, November.
- Otsuka, Yasuji, 1997. "A Welfare Analysis of Local Franchise and Other Types of Regulation: Evidence from the Cable TV Industry," Journal of Regulatory Economics, Springer, vol. 11(2), pages 157-80, March.
- Thomas W. Hazlett, 1986. "Competition Vs. Franchise Monopoly In Cable Television," Contemporary Economic Policy, Western Economic Association International, vol. 4(2), pages 80-97, 04.
- Beard, T Randolph, et al, 2001. "Price-Quality Tradeoffs and Welfare Effects in Cable Television Markets," Journal of Regulatory Economics, Springer, vol. 20(2), pages 107-23, September.
- John W. Mayo & Yasuji Otsuka, 1991. "Demand, Pricing, and Regulation: Evidence from the Cable TV Industry," RAND Journal of Economics, The RAND Corporation, vol. 22(3), pages 396-410, Autumn.
- Bruce M. Owen & Peter R. Greenhalgh, 1986. "Competitive Considerations In Cable Television Franchising," Contemporary Economic Policy, Western Economic Association International, vol. 4(2), pages 69-79, 04.
- Levin, Stanford L. & Meisel, John B., 1991. "Cable television and competition : Theory, evidence and policy," Telecommunications Policy, Elsevier, vol. 15(6), pages 519-528, December.
- Robert N. Rubinovitz, 1993. "Market Power and Price Increases for Basic Cable Service Since Deregulation," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 1-18, Spring.
- Diane Bruce Anstine, 2004. "The impact of the regulation of the cable television industry: the effect on quality-adjusted cable television prices," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 793-802.
When requesting a correction, please mention this item's handle: RePEc:dlw:wpaper:13-06.. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Saul Hoffman)
If references are entirely missing, you can add them using this form.