Cross-Subsidization in Telecommunications

Steve G Parsons

Journal of Regulatory Economics, 1998, vol. 13, issue 2, 157-82

Abstract: The Telecommunications Act and FCC and state commission orders have made the proper consideration of cross-subsidization increasingly important. This article briefly surveys the economics literature on cross-subsidization. Caveats regarding the application of the theory to telecommunications, including cross-elastic effects, zero economic profit assumptions, and mistaken identification of loop costs as common production costs, are discussed. The patterns of cross-subsidy and claims of their existence in the industry are considered. The FCC's recent orders are discussed in the context of the relevant economics literature. Copyright 1998 by Kluwer Academic Publishers

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://journals.kluweronline.com/issn/0922-680X/contents link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:regeco:v:13:y:1998:i:2:p:157-82

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2

Access Statistics for this article

Journal of Regulatory Economics is currently edited by Menaham Spiegel

More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().