A Consideration of Telecommunications Market Structure in the Presence of Municipal Provision: The Case of US Cities

A Consideration of Telecommunications Market Structure in the Presence of Municipal Provision:... We consider the effect of government-owned telecommunications providers on privately owned rivals by comparing the presence of private telecommunications services providers alongside municipal competitors in the US telecommunications industry from 1999 through 2002. Our primary finding is that the presence of a municipal provider is negatively correlated with a city’s having private providers. However, the marginal effects indicate that the effect of municipal competition on private provision is largely concentrated on the first entrant, suggesting cities may choose to provide telecommunications services in areas with inadequate demand to support private provision. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

A Consideration of Telecommunications Market Structure in the Presence of Municipal Provision: The Case of US Cities

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Publisher
Springer US
Copyright
Copyright © 2009 by Springer Science+Business Media, LLC.
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-009-9205-4
Publisher site
See Article on Publisher Site

Abstract

We consider the effect of government-owned telecommunications providers on privately owned rivals by comparing the presence of private telecommunications services providers alongside municipal competitors in the US telecommunications industry from 1999 through 2002. Our primary finding is that the presence of a municipal provider is negatively correlated with a city’s having private providers. However, the marginal effects indicate that the effect of municipal competition on private provision is largely concentrated on the first entrant, suggesting cities may choose to provide telecommunications services in areas with inadequate demand to support private provision.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Feb 28, 2009

References

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