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Title: Cable Firm Behavior in the Presence of State Laws

Citation Type: Miscellaneous

Publication Year: 2006

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Abstract: Cities can use the threat of entry as a mechanism to control private cable firm behavior. Recent state laws prohibiting cities from owning and operating telecom services curtail the efficacy of this mechanism. This paper uses variation in state laws to explore whether the threat of entry mechanism is an effective tool. We find that cities which are prohibited from owning and operating telecom services experience lower expanded tier prices and faster time to broadband availability. These results suggest that private cable operator opportunism is low, and that the state laws act to protect cable firms from appropriation by cities.

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Authors: Seamans, Robert

Publisher: University of California, Berkeley

Data Collections: IPUMS USA

Topics: Other

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