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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title The impact of the 1992 Cable Act on household demand and welfare
Organization Unit
Authors
  • Gregory S. Crawford
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title RAND Journal of Economics
Publisher Wiley Open Access
Geographical Reach international
ISSN 0741-6261
Volume 31
Number 3
Page Range 422 - 449
Date 2000
Abstract Text I measure the benefit to households of the 1992 Cable Act in light of strategic responses by cable systems to the regulations mandated by the act. A discrete-choice differentiated-product model of household demand for all offered cable television services forms the basis of the analysis. Aggregation over households and service combinations to the level of the data permits estimation on a cross-section of cable markets from before and after the act. The results indicate that while the regulations mandated price reductions of 10–17% for cable services, observed system responses yielded no change in household welfare. Post-act changes in cable prices are responsible for most of the difference.
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Digital Object Identifier 10.2307/2600995
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Keywords Cable television, multipoint distribution service, subscription television, broadband communication systems, cable television laws, satellite master antenna television, cable television networks, television relay systems, households