Read e-book online After Divestiture: The Political Economy of State PDF

By Paul Eric Teske

ISBN-10: 0791403238

ISBN-13: 9780791403235

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Additional info for After Divestiture: The Political Economy of State Telecommunications Regulation

Example text

This argument is flawed, however, because several new consulting firms, staffed with ex­telephone company engineers, can provide telecommunications management functions for large users.  Or, they could have mixed elements of these different policies.  If regulators change rates gradually, but not too slowly, they can avoid large­scale uneconomic bypass and then monitor the changes in telecommunications markets as the prices are adjusted. 1.  192).  On the opposite extreme is a policy of retaining the old methods of cost allocation.

As with descriptions of inflation in macroeconomic theories, deregulatory policies may be largely of the "demand­pull" or "supply­push" varieties, or a combination of both.  Much controversy has centered on whether interest group pressure comes from a variety of sources, in a pluralist fashion, or whether a few powerful groups continually dominate outcomes.  The Federal Communications Commission, for example, clearly was not captured by AT&T in the 1970s.  AT&T did advance the regulated monopoly concept in the early part of this century (Brock, 1981), but the theory of complete business exploitation of the regulatory process is no longer relevant in telecommunications or most other industries today.

The interest group theory incorporates the strength of interest groups that provide input into the regulatory process from several different angles, the cleavages that develop on key issues, and the coalitions that form along these cleavages. The institutional theory argues that the accountability structure of regulatory institutions constrains the evaluation of interest group inputs and the subsequent decisions.  I expect that elements of both explanations are required to explain state telecommunications regulatory choices in the 1980s.

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After Divestiture: The Political Economy of State Telecommunications Regulation by Paul Eric Teske

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