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Price Cap Regulation and Declining Demand

In: The Future of the Postal Sector in a Digital World

Author

Listed:
  • Timothy J. Brennan

    (University of Maryland Baltimore County (UMBC)
    Resources for the Future)

  • Michael A. Crew

    (Rutgers Business School)

Abstract

PCR originated in the late 1970s in the USA with a new regulatory scheme for Michigan Bell that replaced tradition cost-of-service regulation (COS). It gathered considerable momentum in the 1980s, with its adaption for AT&T following the Divestiture of the Regional Bell Operating Companies in 1984. PCR’s momentum continued with the privatization of the utilities in the UK. All of the newly privatized utilities were subject to PCR, not only telecommunications, but also electricity, gas, and water.

Suggested Citation

  • Timothy J. Brennan & Michael A. Crew, 2016. "Price Cap Regulation and Declining Demand," Topics in Regulatory Economics and Policy, in: Michael Crew & Timothy J. Brennan (ed.), The Future of the Postal Sector in a Digital World, pages 1-17, Springer.
    • Handle: RePEc:spr:topchp:978-3-319-24454-9_1
    DOI: 10.1007/978-3-319-24454-9_1
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    Citations

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    Cited by:

    1. Philippe De Donder & Frank Rodriguez & Soterios Soteri, 2018. "The Impact of Increasing Competition for Non-Contract Parcels on Postal Prices and Efficiency Decisions," Topics in Regulatory Economics and Policy, in: Pier Luigi Parcu & Timothy J. Brennan & Victor Glass (ed.), New Business and Regulatory Strategies in the Postal Sector, pages 175-189, Springer.
    2. David E. M. Sappington & Dennis L. Weisman, 2016. "The disparate adoption of price cap regulation in the U.S. telecommunications and electricity sectors," Journal of Regulatory Economics, Springer, vol. 49(2), pages 250-264, April.
    3. Christopher Decker, 2016. "Regulating networks in decline," Journal of Regulatory Economics, Springer, vol. 49(3), pages 344-370, June.

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