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The impact of the regulation of the cable television industry: the effect on quality-adjusted cable television prices

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  • Diane Bruce Anstine

Abstract

Between the mid-1980s and early 1990s, cable television rates increased substantially. Simple price comparisons over the regulated and deregulated eras are difficult as the programming changed simultaneously. Using a modified hedonic framework to allow for the lack of competition on the supply side of the industry, this paper imputes the price for regulation era cable packages using consumers' estimated willingness to pay for individual satellite networks during the unregulated period. Then a 'quality adjusted' price for the cable package offered in 1985 is estimated. On average, regulation benefited consumers by keeping prices below monopolist's profit maximizing price.

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  • Diane Bruce Anstine, 2004. "The impact of the regulation of the cable television industry: the effect on quality-adjusted cable television prices," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 793-802.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:8:p:793-802
    DOI: 10.1080/0003684042000229523
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    References listed on IDEAS

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    1. Beil, Richard O, Jr. & Dazzio Jr., Thomas & Ekelund Jr., Robert B. & Jackson, John D., 1993. "Competition and the Price of Municipal Cable Television Services: An Empirical Study," Journal of Regulatory Economics, Springer, vol. 5(4), pages 401-415, December.
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    Cited by:

    1. Ebru Tekin Bilbil, 2018. "Methodology for the Regulation of Over-the-top (OTT) Services: The Need of A Multi-dimensional Perspective," International Journal of Economics and Financial Issues, Econjournals, vol. 8(1), pages 101-110.
    2. 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.
    3. Nicolas Vaillant & Philippe Lesot & Quentin Bonnard & Valerie Harrant, 2010. "The use of expert opinion, quality and reputation indicators by consumers: evidence from the French vaulting stallion semen market," Applied Economics, Taylor & Francis Journals, vol. 42(6), pages 739-745.
    4. DOI Naoshi & OHASHI Hiroshi, 2015. "An Airline Merger and its Remedies: JAL-JAS of 2002," Discussion papers 15100, Research Institute of Economy, Trade and Industry (RIETI).
    5. Naoki Watanabe & Ryo Nakajima & Takanori Ida, 2010. "Quality-Adjusted Prices of Japanese Mobile Phone Handsets and Carriers’ Strategies," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(4), pages 391-412, June.

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