Cost Proxy Models and Telecommunications Policy A New Empirical Approach to Regulation

Author/creator Gasmi, Farid Author
Other author Kennet, D. Mark Author
Other author Laffont, Jean-Jacques Author
Other author Sharkey, William W. Author
Format Electronic
Publication InfoCambridge : MIT Press
Description274 p. ill 09.000 x 06.000 in.
Supplemental ContentFull text available from MIT Press Direct to Open Backfile HSS Monographs
Supplemental ContentFull text available from eBooks on EBSCOhost
Subjects

SeriesRegulation of Economic Activity Ser. Vol. 22
Summary Annotation <p>The telecommunications industry defies easy characterization. The long-distance sector is highly competitive and the local exchange sector much less so, while digital transmission and switching have blurred the distinction between traditional voice communication and the transmission of video and data messages. Regulation of this industry has generally been considered necessary because it has aspects of a natural monopoly.This book takes an empirical approach to natural monopoly and the need for regulation of telecommunications. The centerpiece of the analysis is a sophisticated engineering cost proxy model, the local exchange cost optimization model (LECOM). The book, which is largely methodological, shows that a combination of LECOM, econometrics, and simulations can aid policy discussion of such contentious issues as incentive regulation, natural monopolies, estimating the cost of interconnection among networks, and the obligation of universal service. The book presents a theoretical framework to explain the incentives of firms and the power of regulation and then uses LECOM to test the theoretical implications. The work is unusual in that it applies the foundations of regulation theory to a model of an industry rather than applying econometric theory to historical cost data. The book includes a CD-ROM containing the data set the authors used to analyze their model.</p>
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2002024611
ISBN9780262072373
ISBN0262072378 (Trade Cloth) Active Record
Standard identifier# 9780262072373
Stock number00015994

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