Productivity and Price Caps in Telecommunications

KwokaJr., John E.

doi:10.1007/978-1-4615-3976-6_5

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Cost Changes Over Time: the Formula From X To Z1

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1992

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Cited by 10 publications

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“…Consequently, the FCC relied primarily upon historical evidence with respect to AT&T's performance, evidence that could not readily be tailored to the matter at hand. This evidence included the following:12 l2 Further discussion and citations to all studies can be found in Kwoka [1991].…”

Section: Cost Changes Over Time: the Formula From X To Zmentioning

confidence: 99%

Implementing Price Caps in Telecommunications

Kwoka¹

1993

Journal of Policy Analysis and Management

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Over the past few years, price caps have replaced rate‐of‐return regulation in many sectors of telecommunications. This article focuses on the key implementation issues raised in the Federal Communications Commission's formulation of price cap plans for AT&T and the local telephone exchange carriers. Specifically, it discusses company cost changes over time and the formulas employed to track costs; the multiplicity of prices and the structure of regulations designed to cap them; and the inevitability of errors in the long run and the disincentives likely to result from efforts to correct such errors. It concludes with an evaluation of the performance of these price cap plans, noting how the resolution of these various issues has affected plan success.

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Section: Cost Changes Over Time: the Formula From X To Zmentioning

confidence: 99%