publication . Article . 2012

Telecommunications Deregulation

Jerry A. Hausman; William E. Taylor;
Open Access
  • Published: 01 Jan 2012 Journal: American Economic Review, volume 102, pages 386-390 (issn: 0002-8282, Copyright policy)
  • Publisher: American Economic Association
From Fred Kahn's writings and experiences as a telecommunications regulator and commenter, we draw the following conclusions: prices must be informed by costs; costs are actual incremental costs; costs and prices are an outcome of a Schumpeterian competitive process, not the starting point; excluding incumbents from markets is fundamentally anticompetitive; and a regulatory transition to deregulation entails propensities to micromanage the process to generate preferred outcomes, visible competitors and expedient price reductions. And most important, where effective competition takes place among platforms characterized by sunk investment--land-line telephony, cab...
free text keywords: Economics and Econometrics
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