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Federal Preemption of Local Government Telegraph Franchise Entry Barriers

In: Research in Economic History, volume 38

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  • Aaron M. Honsowetz

Abstract

The US central government enactment of the 1866 Post Roads Act preempted state and municipal telegraph franchise entry barriers. Like present-day telecommunication companies, local franchise regulations were an entry barrier to US telegraph companies. These pre-1866 state and municipal telegraph laws were barriers of both entry and trade between states. Barriers that would of reduced the benefits of a common market if the barriers had not been preempted by the 1866 Post Roads Act. I document what laws were preempted by the 1866 Post Roads Act, explain how these laws increased entry barriers, provide evidence that preemption was enforced, and use two counterfactuals to calculate rough estimates of the decrease in entry costs from enforcement of the act.

Suggested Citation

  • Aaron M. Honsowetz, 2025. "Federal Preemption of Local Government Telegraph Franchise Entry Barriers," Research in Economic History, in: Research in Economic History, volume 38, volume 38, pages 127-155, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rehizz:s0363-326820250000038005
    DOI: 10.1108/S0363-326820250000038005
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    More about this item

    Keywords

    Telegraph; telecommunication law; federal preemption; entry barriers; municipal franchise; 1866 Post Roads Act; H77; K21; K23; L4; L96; L98; N4; N7;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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