Price Caps and Incentive Regulation in Telecommunications
- ISBN-10
- 1461539765
- ISBN-13
- 9781461539766
- Category
- Business & Economics
- Pages
- 244
- Language
- English
- Published
- 2012-12-06
- Publisher
- Springer Science & Business Media
- Author
- Michael A. Einhorn
Description
Michael A. Einhorn In continuing to deregulate telecommunications companies, regulators have begun to consider alternative approaches to traditional cost-based price regulation as a means of encouraging monopoly efficiency, promulgating technological innova tion, protecting consumers, and reducing administrative costs. Under cost-based regulatory procedures that had been used, prices were designed to recover the regulated company's costs plus an allowed rate of return on its rate base; this strategy was costly to administer, provided no consistent incentives to cost-ef ficiency and technological improvement, afforded many opportunities for strategic misrepresentation of reported costs, and may have encouraged both uneconomic expansion of the utility's rate base and cross-subsidization of its competitive services. A category of alternative regulatory approaches can be classified broadly as social contracts. Under the general strategy of social contract regulation, regulators first delimit a group of regulated core services that they continue to regulate and then stipulate a list of constraints that the utility must agree to meet in the future; in exchange, regulators agree to detariff or deregulate entirely other competitive or nonessential services that the utility may offer. As long as no stipulated constraints are violated, the utility may price freely any service; if it reduces costs, it may keep a share of its profits. According to the National Telecommunications Information Administration (NTIA, 1987), social contract agreements of one form or another have been considered or implemented in a majority of American states.
Get the book
Similar books
-
Taxation for Decision Makers, Binder Ready Version
By Shirley Dennis-Escoffier, Karen A. Fortin[LO 8.2] The Timberlake Corporation has an opportunity to sell its manufacturing facility to Carroll Corporation for $4,500,000. The property has a basis of ...
-
Taxation for Decision Makers, 2019 Edition
By Shirley Dennis-Escoffier, Karen A. Fortin[LO 9.2] The Timberlake Corporation has an opportunity to sell its manufacturing facility to Carroll Corporation for $4,500,000. The property has a basis of ...
-
Taxation for Decision Makers, 2020
By Shirley Dennis-Escoffier, Karen A. Fortin[LO 9.2] The Timberlake Corporation has an opportunity to sell its manufacturing facility to Carroll Corporation for $4,500,000. The property has a basis of ...
-
Keeping House in Lusaka
By Karen Tranberg Hansen1934. Memorandum on the Native Tribes and Tribal Areas of Northern Rhodesia . Lusaka : Government Printer . Timberlake , Michael , ed . 1985.
-
Encyclopedia of Community: From the Village to the Virtual World
By DAVID LEVINSON, KAREN CHRISTENSENTimberlake, L. (1987). Only one Earth. London: BBC Books: Earthscan. Tinker, I. (1987). Street foods: Testing assumptions about informal sector by women and ...
-
Taxation for Decision Makers 2006
By Shirley Dennis-Escoffier, Karen FortinThe Timberlake Corporation has an opportunity to sell its manufacturing facility to Carroll Corporation for $ 4,500,000 . The property has a basis of ...
-
Handbook of Organizational Performance: Behavior Analysis and Management
By William K Redmon, Thomas C Mawhinney, Carl Merle JohnsonTimberlake (1980, 1984) promulgated a behavioral-regulation analysis of learned performance that emphasizes the importance of behavioral.
-
Money and the Rule of Law: Generality and Predictability in Monetary Institutions
By Peter J. Boettke, Alexander William Salter, Daniel J. Smith190; Timberlake 1993, pp. 356–357). By increasing fiscal expenditures, President Carter may have successfully cornered the Fed into delaying tighter ...
-
Economic Politics: The Costs of Democracy
By William R. Keech, William R Keech( Timberlake , 1993 , p . 4 ) The same was true of the second Bank of the United States , which was chartered in 1816. However , under the leadership of ...
-
Handbook of Organizational Performance: Behavior Analysis and Management
By William K Redmon, Thomas C Mawhinney, Carl Merle JohnsonSchlinger, H. and Blakely, E. (1987). Function-altering effects of ... Timberlake, W. and Allison, J. (1974). Response deprivation: An empirical 48 HANDBOOK ...