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Regulation, Innovation, and the Introduction of New Telecommunications Services

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  • James E. Prieger

    (University of California, Davis)

Abstract

I examine the effects of FCC regulation on the innovation and introduction of advanced telecommunications services in the United States. An interim of lighter regulation provides an "experiment" to test the regulatory regime's impact. The econometric model comprises an arrival process (for service innovation) followed by a duration process (for regulatory delay). The number of services the firms created during the interim is 60%-99% higher than the model predicts they would have created if the stricter regulation had still been in place. Overall, firms would have introduced 62% more services to consumers during the study period if the regulation had not been in place. © 2002 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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  • James E. Prieger, 2002. "Regulation, Innovation, and the Introduction of New Telecommunications Services," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 704-715, November.
    • Handle: RePEc:tpr:restat:v:84:y:2002:i:4:p:704-715
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    Cited by:

    1. Jillian Berk & Linda Rosenberg & Lindsay Cattell & Johanna Lacoe & Lindsay Fox & Myley Dang & Elizabeth Brown, "undated". "The External Review of Job Corps: An Evidence Scan Report," Mathematica Policy Research Reports c862f115989a4b94a151e38d9, Mathematica Policy Research.
    2. James E. Prieger, 2005. "Endogenous Regulatory Delay and the Timing of Product Innovation," Working Papers 54, University of California, Davis, Department of Economics.
    3. James E. Prieger, 2004. "The Impacts of the Americans with Disabilities Act on the Entry and Exit of Retail Firms," Econometric Society 2004 North American Winter Meetings 589, Econometric Society.
    4. Bourreau, Marc & Dogan, Pinar, 2005. "Unbundling the local loop," European Economic Review, Elsevier, vol. 49(1), pages 173-199, January.
    5. Marino, Marianna & Parrotta, Pierpaolo & Valletta, Giacomo, 2019. "Electricity (de)regulation and innovation," Research Policy, Elsevier, vol. 48(3), pages 748-758.
    6. James E. Prieger, 2002. "Regulation, Innovation, and the Introduction of New Telecommunications Services," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 704-715, November.
    7. Prieger, James E, 2001. "Telecommunications Regulation and New Services: A Case Study at the State Level," Journal of Regulatory Economics, Springer, vol. 20(3), pages 285-305, November.
    8. de Bijl, Paul & Peitz, Martin, 2008. "Innovation, convergence and the role of regulation in the Netherlands and beyond," Telecommunications Policy, Elsevier, vol. 32(11), pages 744-754, December.
    9. James Prieger, 2008. "Product innovation, signaling, and endogenous regulatory delay," Journal of Regulatory Economics, Springer, vol. 34(2), pages 95-118, October.
    10. James E. Prieger, 2002. "Regulation, Innovation, and the Introduction of New Telecommunications Services," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 704-715, November.
    11. James E. Prieger, 2003. "The Timing of Product Innovation and Regulatory Delay," Working Papers 19, University of California, Davis, Department of Economics.
    12. Machado Léo, Ricardo & Tello‐Gamarra, Jorge, 2016. "Inovac¸ão em servic¸os: estado da arte e perspectivas futuras [Innovation in services: state of the art and future perspectives]," MPRA Paper 82195, University Library of Munich, Germany, revised 29 Mar 2017.
    13. Carlo Cambini & Federico Caviggioli & Giuseppe Scellato, 2015. "R&D, Patenting and Market Regulation: Evidence from EU Electricity industry," IEFE Working Papers 78, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    14. Prieger, James E., 2007. "Regulatory delay and the timing of product innovation," International Journal of Industrial Organization, Elsevier, vol. 25(2), pages 219-236, April.
    15. Bruce L. Benson, 2015. "Regulation As a Barrier to Market Provision and to Innovation: The Case of Toll Roads and Steam Carriages in England," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 30(Spring 20), pages 61-87.
    16. Blind, Knut, 2012. "The influence of regulations on innovation: A quantitative assessment for OECD countries," Research Policy, Elsevier, vol. 41(2), pages 391-400.
    17. Gilbert, Richard J., 2021. "Separation: A Cure for Abuse of Platform Dominance?," Information Economics and Policy, Elsevier, vol. 54(C).
    18. Boakye, Derrick & Sarpong, David & Mordi, Chima, 2022. "Regulatory review of new product innovation: Conceptual clarity and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    19. Torsten J. Gerpott, 2006. "Innovationen und Regulierung in der Telekommunikationswirtschaft," Schmalenbach Journal of Business Research, Springer, vol. 58(54), pages 133-153, January.
    20. James E. Prieger, 2005. "Estimation of a Simple Queuing System WithUnits-in-Service and Complete Data," Working Papers 37, University of California, Davis, Department of Economics.
    21. Bauer, Johannes M. & Shim, Woohyun, 2012. "Regulation and digital innovation: Theory and evidence," 23rd European Regional ITS Conference, Vienna 2012 60364, International Telecommunications Society (ITS).
    22. James E. Prieger, 2005. "Estimation of a Simple Queuing System WithUnits-in-Service and Complete Data," Working Papers 535, University of California, Davis, Department of Economics.

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    More about this item

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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