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Cable Television Rate Deregulation

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  • Thomas Hazlett

Abstract

In the 1984 Cable Communications Policy Act, cable television operators were effectively freed from rate regulation, and subsequently enjoyed monopoly franchise protection with free market pricing. In 1992, however, reregulation of basic cable service rates was established in the Cable Consumer Protection and Competition Act. The argument for reimposing regulation was that a substantial increase in basic cable rates had occurred post-deregulation. Yet the efficacy of rate controls upon an industry which has substantial freedom to adjust product quality is theoretically ambiguous. This study examines simple price, quality, and output evidence to determine how rate deregulation impacted consumers. It finds support for the view that rate controls did not lower quality-adjusted prices and are best explained as tools for influencing rent distribution across interest groups

Suggested Citation

  • Thomas Hazlett, 1996. "Cable Television Rate Deregulation," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 3(2), pages 145-164.
    • Handle: RePEc:taf:ijecbs:v:3:y:1996:i:2:p:145-164
    DOI: 10.1080/758528450
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    References listed on IDEAS

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    1. Robert N. Rubinovitz, 1993. "Market Power and Price Increases for Basic Cable Service Since Deregulation," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 1-18, Spring.
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    Cited by:

    1. Kasuga, Norihro & Manabu, Shishikura & Masanori, Kondo, 2007. "Platform Competition in Pay-TV Market," MPRA Paper 5694, University Library of Munich, Germany.

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