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Monopoly quality degradation and regulation in cable television


Crawford, Gregory S; Shum, Matthew (2007). Monopoly quality degradation and regulation in cable television. The Journal of Law and Economics, 50(1):181-219.

Abstract

Using an empirical framework based on the Mussa-Rosen model of monopoly quality choice, we calculate the degree of quality degradation in cable television markets and the impact of regulation on those choices. We find lower bounds of quality degradation ranging from 11 to 45 percent of offered service qualities. Furthermore, cable operators in markets with local regulatory oversight offer significantly higher quality, less degradation, and greater quality per dollar, despite higher prices.

Abstract

Using an empirical framework based on the Mussa-Rosen model of monopoly quality choice, we calculate the degree of quality degradation in cable television markets and the impact of regulation on those choices. We find lower bounds of quality degradation ranging from 11 to 45 percent of offered service qualities. Furthermore, cable operators in markets with local regulatory oversight offer significantly higher quality, less degradation, and greater quality per dollar, despite higher prices.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Economics and Econometrics
Social Sciences & Humanities > Law
Uncontrolled Keywords:Government regulation, monopoly, market prices, broadcast regulation, market share, cable television, cable television industry, consumer preferences, securities and exchange commission regulation
Language:English
Date:February 2007
Deposited On:25 Sep 2019 12:21
Last Modified:31 Jul 2020 03:40
Publisher:University of Chicago Press
ISSN:0022-2186
OA Status:Closed
Publisher DOI:https://doi.org/10.1086/508310
Related URLs:https://www.econ.uzh.ch/en/people/faculty/crawford/research.html (Author)

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