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While the 1996 Telecommunications Act requires all incumbent local telephone companies to cooperate with local entrants, section 271 of the Act provides the Bell companies-but not GTE-additional incentives to cooperate. Using an original data set, I compare the negotiations of AT&T, as a local entrant, with GTE and with the Bell companies in states where both operate. My results suggest that the differential incentives matter: The Bells accommodate entry more than does GTE, as evidenced in quicker agreements, less litigation, and more favorable prices offered for network access. Consistent with this, there is more entry into Bell territories.

This paper uses the stochastic production frontier approach to investigate the relationship between size and technical efficiency in the Philippines textile industry. Results show that technical efficiency increases with size, thus weakening the case for SME targeted policies. Moreover, both exports and government interventions are positively associated with efficiency, although the link between government support and technical efficiency is somewhat weaker.

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