Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79436
Authors: 
Prieger, James E.
Year of Publication: 
2000
Series/Report no.: 
Working Papers, University of California, Davis, Department of Economics 00-11
Abstract: 
The effects that regulation has on the innovation and the introduction of new telecommunications services have not been previously quantified in the literature. This study compares state-regulated services in Indiana under rate of return regulation (RoRR) and under alternative regulation. The econometric model comprises an count process (for innovation) followed by a duration process with selection (for regulatory delay). Moving away from RoRR increased the rate of service creation to three times the old rate. Expected approval delays nearly disappear. A prediction exercise indicates that the firm would have introduced 12 times as many services to consumers if the alternative regulation had been in place the entire time.
Subjects: 
regulation
product innovation
telecommunications
count data
duration data
tobit model
Document Type: 
Working Paper

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