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Competitive Considerations In Cable Television Franchising

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  • BRUCE M. OWEN
  • PETER R. GREENHALGH

Abstract

Franchising and renewing of franchises for cable television systems is an important urban policy issue. Of particular interest is whether franchise authorities ought to grant more than one franchise to provide cable service in a given area. This paper reports results of an empirical investigation into the cost structure of large, modern, urban cable systems. We find modest economies of scale in dimensions relevant to the feasibility of direct competition. The economies are not so large as to rule out the possibility that competition…whether direct or potential…can be an important disciplinary force in the marketplace.

Suggested Citation

  • 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, April.
    • Handle: RePEc:bla:coecpo:v:4:y:1986:i:2:p:69-79
    DOI: 10.1111/j.1465-7287.1986.tb00843.x
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    Cited by:

    1. Mary T Kelly & John S Ying, 2014. "Testing the Effectiveness of Regulation and Competition on Cable Television Rates," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 40(3), pages 387-404, June.
    2. Diane Bruce Anstine, 2001. "How Much Will Consumers Pay? A Hedonic Analysis of the Cable Television Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 19(2), pages 129-147, September.
    3. Donald J. Boudreaux and Robert B. Ekelund, 1994. "Cable Regulation," Cato Journal, Cato Journal, Cato Institute, vol. 14(1), pages 87-107, Spring/Su.
    4. Sutirtha Bagchi & Jagadeesh Sivadasan, 2017. "Barriers to Entry and Competitive Behavior: Evidence from Reforms of Cable Franchising Regulations," Journal of Industrial Economics, Wiley Blackwell, vol. 65(3), pages 510-558, September.
    5. Kim, Hyunchul & Park, Minsoo & Lee, Sangwoo, 2017. "Do vertically and horizontally integrated firms survive longer? The case of cable networks in Korea," Information Economics and Policy, Elsevier, vol. 39(C), pages 84-93.
    6. Crandall, Robert W., 1997. "Are telecommunications facilities 'infrastructure?' If they are, so what?," Regional Science and Urban Economics, Elsevier, vol. 27(2), pages 161-179, April.
    7. Hazlett, Thomas W., 1987. "Duopolistic Competition In Catv: Theory, Practice, And Policy," Working Papers 225809, University of California, Davis, Department of Agricultural and Resource Economics.

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