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Incentive Regulation and Telecommunications Service Quality

Chunrong Ai, Salvador Martinez () and David Sappington

Journal of Regulatory Economics, 2004, vol. 26, issue 3, 263-285

Abstract: We examine the impact of incentive regulation—price regulation and earnings sharing regulation—on retail service quality in the U.S. telecommunications industry between 1991 and 2002. We find that incentive regulation is associated with significantly higher service quality on several dimensions (e.g., more rapid installation of new telephone service, fewer trouble reports, and increased customer satisfaction) but significantly lower quality on some dimensions (fewer installation commitments met and longer delays in resolving reported service problems) Copyright Kluwer Academic Publishers 2004

Keywords: service quality; incentive regulation; telecommunications (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1007/s11149-004-7551-6

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