Template-Type: ReDIF-Paper 1.0
Author-Name: James E. Prieger
Author-Name-First: James E.
Author-Name-Last: Prieger
Author-Workplace-Name: Department of Economics, University of California Davis
Title: Telecommunications Regulation and New Services:  a Case Study at the State Level
Abstract: The effects that regulation has on the innovation and the introduction of new telecommunications services have not been previously quantified in the literature. This study compares state-regulated services in Indiana under rate of return regulation (RoRR) and under alternative regulation. The econometric model comprises an count process (for innovation) followed by a duration process with selection (for regulatory delay). Moving away from RoRR increased the rate of service creation to three times the old rate. Expected approval delays nearly disappear. A prediction exercise indicates that the firm would have introduced 12 times as many services to consumers if the alternative regulation had been in place the entire time.
Length: 30
File-URL: https://repec.dss.ucdavis.edu/files/YThALyDKJmsfh2BzeuhDQZYD/00-11.pdf
File-Format: application/pdf
Number: 259
Classification-JEL: 
KeyWords: regulation, product innovation, telecommunications, count data, duration data, tobit model
Creation-Date: 20030115
Handle: RePEc:cda:wpaper:259