Making Economic Sense of the Telecommunications Act of 1996

Timothy Brennan

Industrial and Corporate Change, 1996, vol. 5, issue 4, 941-61

Abstract: The purpose of this paper is to assess the impact of the Telecommunications Act of 1996 on the structural regulation of the telephone industry after ATST divestiture. It begins with a review of the broad outline of the Act and then discusses the theory behind structural regulation of the telephone industry. The paper concludes by identifying four crucial features of the theory: regulation-created incentives, underlying market power, effectiveness of government monitoring, and countervailing productive or competitive efficiencies. Copyright 1996 by Oxford University Press.

Date: 1996
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