Revenue sharing in incentive regulation plans

Article Abstract:

The telecommunications industry is following other industries in adopting alternatives to standard rate of return arrangements. A particularly popular alternative is profit sharing, which, although it has its advantages, does not provide ideal incentives for efficiency on the part of the regulated firm. Because of this, some states, including Idaho and Oregon, have opted for revenue sharing, instead of profit sharing, for their telecommunications industries. Under this arrangement, strict adherence to an incentive plan is cultivated among both consumers and regulated firms.

Public Finance Activities, Telecommunications, Telephone Communication, Bonus & Merit Payments, Revenue Sharing-State, Evaluation, Laws, regulations and rules, Incentives (Business), Bonuses, State finance, Revenue sharing

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Potential pitfalls in empirical investigations of the effects of incentive regulation plans in the telecommunications industry

Article Abstract:

Efforts to determine the effects of incentive regulation in the telecommunications industry can result in seven pitfalls. These include the Unidimensional Yardstick Pitfall which involves judging regulation to be a failure, the Causality Pitfall when causality is confused with correlation, the Competition Effect Pitfall when the effects of incentive regulation are entirely attributed to competition.

Analysis, Telecommunication policy, Telecommunications policy

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The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission

Article Abstract:

It was hoped that implementation of the 1996 Telecommunications Act would result in a free-for-all competitive market; for the most part, this has not happened. Issues concerning government regulation, competition, and efficiency are discussed.

United States, Statistical Data Included, Research, Business, Innovations, Competition (Economics), United States. Federal Communications Commission, Economic policy, Deregulation, Industry regulations, Government regulation of business, Trade regulation

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