Cost Proxy Models and Telecommunications Policy: A New Empirical Approach to Regulation (Regulation of Economic Activity)

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9780262072373: Cost Proxy Models and Telecommunications Policy: A New Empirical Approach to Regulation (Regulation of Economic Activity)

The telecommunications industry defies easy characterization. The long-distance sector is highly competitive and the local exchange sector much less so, while digital transmission and switching have blurred the distinction between traditional voice communication and the transmission of video and data messages. Regulation of this industry has generally been considered necessary because it has aspects of a natural monopoly.

This book takes an empirical approach to natural monopoly and the need for regulation of telecommunications. The centerpiece of the analysis is a sophisticated engineering cost proxy model, the local exchange cost optimization model (LECOM). The book, which is largely methodological, shows that a combination of LECOM, econometrics, and simulations can aid policy discussion of such contentious issues as incentive regulation, natural monopolies, estimating the cost of interconnection among networks, and the obligation of universal service. The book presents a theoretical framework to explain the incentives of firms and the power of regulation and then uses LECOM to test the theoretical implications. The work is unusual in that it applies the foundations of regulation theory to a model of an industry rather than applying econometric theory to historical cost data. The book includes a CD-ROM containing the data set the authors used to analyze their model.

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About the Author:

Farid Gasmi is Professor of Economics at the Université de Toulouse.



William W. Sharkey is a Senior Economist at the Federal Communications Commission.



D. Mark Kennet is Associate Professor of Telecommunications at George Washington University.

Review:

This book is an important tool for regulators and policy analysts interested in implementing sound policies for the regulation of imperfect competition in local monopoly services and for instituting universal service programs. The theoretical rationales expose many of the problems with historic regulatory and subsidy programs and set a framework for implementing efficient forward-looking solutions. In addition, it provides a promising new avenue for ways to do empirical economic research.

(Gregory L. Rosston, Deputy Director, Stanford Institute for Economic Policy Research, Stanford University)

The answer to virtually every important question in the field of empirical regulation depends on estimates of the firm's cost function -- estimates that have been notoriously poor in past telecommunications studies. The authors' cost proxy model approach, enabling a unified empirical study of natural monopoly, universal service, and optimal regulation, takes a giant step toward a New Empirical Regulatory Economics.

(James E. Prieger, Department of Economics, University of California Davis)

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Descrizione libro MIT Press Ltd, United States, 2002. Hardback. Condizione libro: New. New.. Language: English . This book usually ship within 10-15 business days and we will endeavor to dispatch orders quicker than this where possible. Brand New Book. The telecommunications industry defies easy characterization. The long-distance sector is highly competitive and the local exchange sector much less so, while digital transmission and switching have blurred the distinction between traditional voice communication and the transmission of video and data messages. Regulation of this industry has generally been considered necessary because it has aspects of a natural monopoly.This book takes an empirical approach to natural monopoly and the need for regulation of telecommunications. The centerpiece of the analysis is a sophisticated engineering cost proxy model, the local exchange cost optimization model (LECOM). The book, which is largely methodological, shows that a combination of LECOM, econometrics, and simulations can aid policy discussion of such contentious issues as incentive regulation, natural monopolies, estimating the cost of interconnection among networks, and the obligation of universal service. The book presents a theoretical framework to explain the incentives of firms and the power of regulation and then uses LECOM to test the theoretical implications. The work is unusual in that it applies the foundations of regulation theory to a model of an industry rather than applying econometric theory to historical cost data. The book includes a CD-ROM containing the data set the authors used to analyze their model. Codice libro della libreria BTE9780262072373

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Descrizione libro MIT Press Ltd, United States, 2002. Hardback. Condizione libro: New. New.. Language: English . Brand New Book. The telecommunications industry defies easy characterization. The long-distance sector is highly competitive and the local exchange sector much less so, while digital transmission and switching have blurred the distinction between traditional voice communication and the transmission of video and data messages. Regulation of this industry has generally been considered necessary because it has aspects of a natural monopoly.This book takes an empirical approach to natural monopoly and the need for regulation of telecommunications. The centerpiece of the analysis is a sophisticated engineering cost proxy model, the local exchange cost optimization model (LECOM). The book, which is largely methodological, shows that a combination of LECOM, econometrics, and simulations can aid policy discussion of such contentious issues as incentive regulation, natural monopolies, estimating the cost of interconnection among networks, and the obligation of universal service. The book presents a theoretical framework to explain the incentives of firms and the power of regulation and then uses LECOM to test the theoretical implications. The work is unusual in that it applies the foundations of regulation theory to a model of an industry rather than applying econometric theory to historical cost data. The book includes a CD-ROM containing the data set the authors used to analyze their model. Codice libro della libreria BZV9780262072373

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Descrizione libro 2002. Hardcover. Condizione libro: New. Hardcover. The telecommunications industry defies easy characterization. The long-distance sector is highly competitive and the local exchange sector much less so, while digital transmission and swit.Shipping may be from multiple locations in the US or from the UK, depending on stock availability. 274 pages. 0.535. Codice libro della libreria 9780262072373

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