The Economics of Innovation in the Telecommunications Industry

by John McNamara

Overview

The breakup of AT&T in 1984 and the events that have occurred since provide an historical opportunity to evaluate innovative behavior in an industry before and after restructuring. The effects of government regulation and market structure on the rate of industrial innovation are not well understood, and existing studies of innovative behavior across industries yield vague and conflicting conclusions. This book provides a detailed study of the effects of market structure and government regulation on innovation in a single industry over a long period of time. The benefits of a stable industry with prices regulated in the interests of consumers are compared with the benefits of a dynamic industry constantly introducing new products.

The history of telecommunications in the United States is summarized, paying particular attention to the effects of market structure and government policy on innovation. Existing economic studies of the telecommunications industry are reviewed, and the arguments for and against the regulated monopoly structure are evaluated. The philosophy and practice of telecommunications regulation are described and the effects of alternative pricing plans on the demand for services and on the creation of incentives for innovation are studied. Current and emerging telecommunications technologies are described in layman's terms in order to provide an intuitive sense of the economic implications of technological advances.

Product Details

ISBN-13:	9780899305585
Publisher:	Bloomsbury Academic
Publication date:	11/30/1991
Series:	Music Reference Collection; 33
Pages:	208
Product dimensions:	6.00(w) x 9.00(h) x 0.62(d)
Lexile:	1570L (what's this?)

About the Author

JOHN R. McNAMARA is Professor of Economics at Lehigh University. After service as a naval aviator and experience in defense contract management, he took up his career interest in managerial economics. He has published articles in a wide variety of scholarly jourbanals, including Operations Research, Naval Research Logistics, Managerial and Decision Economics, Water Resources Research, and The Jourbanal of Economics and Business. He has also conducted research projects for government agencies and corporations.

Table of Contents

Preface
Introduction
A Brief History of Telecommunications in the United States
The Origins of the AT&T Divestiture
The Telecommunications Industry Since 1984
The Determinants of Telecommunications Market Structure
The Economics of Telecommunications
The Theory and Practice of Government Regulation of Telecommunications
Modern Telecommunications Technologies
Market Structure and Innovation
Telecommunications Pricing and Innovation
Telecommunications and Productivity
Trends in Telecommunications
References
Index