Abstract
The mid 1980s and early 1990s were characterized by rampant deregulation in a number of industries, including the telecommunications industry. Although many authors have looked at the implication deregulation had on the long distance market, little has been written regarding the local telephone industry. This paper begins to fill that void. Using a panel data set of 75 local residential exchange markets, controlling for cost and demand differences, this paper tests for the impact competition has on the pricing behavior of local exchanges. It finds that entry as well decisions to allow for competition in the local exchange markets act to lower residential rates, whereas mere consideration of allowing for competition has a largely insignificant effect. The results are robust to a number of specifications.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
