Skip navigation
Full metadata record
DC FieldValueLanguage
dc.contributor.authorGabel, David - Queens College-
dc.contributor.authorGideon, Carolyn - Tufts University-
dc.description.abstractThere is growing sentiment that rate rebalancing to eliminate cross subsidies between local business and local residential telephone markets is necessary to induce efficient entry in the residential market. If the elasticity of supply with respect to the relative prices for business and residential local service is high in both the local business and local residential markets, then the efficiency gains from rebalancing may be large. Alternatively, other factors related to differences in characteristics between business and residential local telephone markets, such as lower costs, lower elasticity of demand, and greater willingness-to-pay for quality or redundancy in the business segment of local telephone may be more important determinants of entry. In this paper we simultaneously measure the elasticity of supply in the business market with regards to the price of business services relative to the price of residential service, using entry, economic and demographic data a the wire center level. We find that business entry is driven by market demand and cost characteristics, and that the effect of cross subsidies in prices on entry is less clear.en
dc.relation.ispartofseriesNET Institute Working Paper;05-15-
dc.subjectRetail Prices, Facility-Based Entry, Telecommunicationsen
dc.titleRetail Prices and Facility-Based Entry into the Telecommunications Marketen
Appears in Collections:NET Institute Working Papers Series

Files in This Item:
File Description SizeFormat 
Gabel_Gideon_05-15.pdf196.29 kBAdobe PDFView/Open

Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.