IDEAS home Printed from https://ideas.repec.org/a/kap/regeco/v13y1998i2p183-96.html
   My bibliography  Save this article

An Analysis of the Welfare Effects of Long-Distance Market Entry by an Integrated Access and Long-Distance Provider

Author

Listed:
  • Hinton, Paul J
  • Zona, J. Douglas
  • Schmalensee, Richard L.
  • Taylor, William E.

Abstract

This paper discusses the welfare effects of entry by a vertically integrated access and long-distance service provider into the long-distance market. Using a stylized model of these markets, we conclude that substantial net consumer benefits arise when a vertically integrated firm is created by the entry of a LEC into the long-distance market, and these gains are mostly achieved from declines in supra-competitive profits received by long-distance incumbents. We find that these gains dominate losses in producer surplus that could arise even it integrated firm entry were to displace more efficient long-distance providers. Copyright 1998 by Kluwer Academic Publishers

Suggested Citation

  • Hinton, Paul J & Zona, J. Douglas & Schmalensee, Richard L. & Taylor, William E., 1998. "An Analysis of the Welfare Effects of Long-Distance Market Entry by an Integrated Access and Long-Distance Provider," Journal of Regulatory Economics, Springer, vol. 13(2), pages 183-196, March.
    • Handle: RePEc:kap:regeco:v:13:y:1998:i:2:p:183-96
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0922-680X/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Kahn, Alfred E. & Tardiff, Timothy J. & Weisman, Dennis L., 1999. "The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission," Information Economics and Policy, Elsevier, vol. 11(4), pages 319-365, December.
    2. Mark Armstrong & David E.M. Sappington, 2006. "Regulation, Competition and Liberalization," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 325-366, June.
    3. David Mandy & David Sappington, 2007. "Incentives for sabotage in vertically related industries," Journal of Regulatory Economics, Springer, vol. 31(3), pages 235-260, June.
    4. Sappington, David E. M., 2003. "Regulating horizontal diversification," International Journal of Industrial Organization, Elsevier, vol. 21(3), pages 291-315, March.
    5. Armstrong, Mark & Sappington, David E.M., 2007. "Recent Developments in the Theory of Regulation," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 27, pages 1557-1700, Elsevier.

    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:kap:regeco:v:13:y:1998:i:2:p:183-96. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.