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- Publisher
- Springer Journals
- Copyright
- Copyright © 2004 by Kluwer Academic Publishers
- Subject
- Economics; Industrial Organization; Microeconomics
- ISSN
- 0889-938X
- eISSN
- 1573-7160
- DOI
- 10.1007/s11151-004-1054-6
- Publisher site
- See Article on Publisher Site
Abstract
In this paper, we explore the determinants of recent entry into local exchange service, and the role that regulatory policies have had in aiding this policy objective. Our results suggest that the 1996 Telecommunications Act did lead to some entry, but that strategic non-price behavior by incumbents may have offset this impact to some extent. We also find that regulatory policies and market fundamentals play an important role in determining entry. Clearly, market size (measured in various ways) is an important determinant of entry, while there is empirical support for the role of more flexible regulatory mechanisms in promoting new entry.
Journal
Review of Industrial Organization – Springer Journals
Published: Dec 30, 2004