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What Can We Learn From Comparative Institutional Analysis? The Case of Telecommunications

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  • Charles B. Blankart
  • GÜnter Knieps

Abstract

In the paper several reasons will be investigated why there is only partial deregulation in Germany and extensive deregulation in the U. S. Purely economic reasons such as economies of scale are shown to be of little help for understanding telecommunications policy in Germany as compared to the U. S. As an alternative, a politico‐economic approach is presented. It is shown that institutional differences can help to understand the differences in deregulatory policy. In Germany, decisions on telecommunications deregulation are centralized on the federal level, whereas they are distributed on the federal and state level in the U. S. As consequence, a different interest group representation is prevailing in each country promoting deregulation in the U. S. and impeding deregulation in Germany. It is shown that the obstacles to deregulation in Germany might be overcome through an explicit compensation scheme embodying an entry tax on the one hand a price subsidy on the other.

Suggested Citation

  • Charles B. Blankart & GÜnter Knieps, 1989. "What Can We Learn From Comparative Institutional Analysis? The Case of Telecommunications," Kyklos, Wiley Blackwell, vol. 42(4), pages 579-598, November.
    • Handle: RePEc:bla:kyklos:v:42:y:1989:i:4:p:579-598
    DOI: 10.1111/j.1467-6435.1989.tb01275.x
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    Cited by:

    1. Knieps, Günter & Zenhäusern, Patrick, 2009. "Stepping stones and access holidays: The fallacies of regulatory micro-management," Discussion Papers 123, University of Freiburg, Institute for Transport Economics and Regional Policy.
    2. Günter Knieps, 2004. "Privatisation of Network Industries in Germany: A Disaggregated Approach," CESifo Working Paper Series 1188, CESifo.
    3. Palovic, Martin, 2022. "Administrative congestion management meets electricity network regulation: Aligning incentives between the renewable generators and network operator," Utilities Policy, Elsevier, vol. 79(C).

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