IDEAS home Printed from https://ideas.repec.org/a/bla/jemstr/v4y1995i2p147-185.html
   My bibliography  Save this article

Tacit Collusion Under regulation in the Pricing of Interstate Long‐Distance Telephone Services

Author

Listed:
  • Paul W. MacAvoy

Abstract

Analysis of seven wholesale and retail markets for long‐distance telephone services since the AT & T divestiture indicates that service provider concentration declined in the later 1980s and then stabilized in the 2990–1993 period. In addition to this stability in market shares, a number of other conditions established since 1990 have been conducive to the development of market sharing rather than significant price competition. The most important of these conditions has been the tarifing process of the Federal Communications Commission by which MCI and Sprint replicate ATGT's price announcements. As market shares stabilized and became more equal, and as regulation formalized the price‐setting process, the price‐cost margins of the three large carriers increased and became more nearly identical. These results are consistent not with price competition but rather with emerging tacit collusion among AT&T, MCI, and Sprint.

Suggested Citation

  • Paul W. MacAvoy, 1995. "Tacit Collusion Under regulation in the Pricing of Interstate Long‐Distance Telephone Services," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 147-185, June.
    • Handle: RePEc:bla:jemstr:v:4:y:1995:i:2:p:147-185
    DOI: 10.1111/j.1430-9134.1995.00147.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1430-9134.1995.00147.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1430-9134.1995.00147.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ashish Nayyar, 2004. "Entry in a Dynamic Model with Equilibrium Price Dispersion with an Application to the Market for Long‐Distance Telephone Services," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(4), pages 577-592, October.
    2. Michelle Sovinsky, 2022. "Do Research Joint Ventures Serve a Collusive Function?," Journal of the European Economic Association, European Economic Association, vol. 20(1), pages 430-475.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jemstr:v:4:y:1995:i:2:p:147-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.