For decades, economists have encouraged regulators to implement more efficient telephone pricing policies in order to eliminate the pervasive cross-subsidies from usage-based services to basic connections. Slowly, and reluctantly, regulators have moved in this direction. The most recent...

Under Section 629 of the Communications Act, Congress directed the FCC to adopt regulations to promote a retail market for set-top boxes. The Commission's first attempt was the ill-fated CableCard experiment, which - by the Commission's own admission - was a dismal failure. In response, the...

In the regulatory setting of rates for statutory-licensed music services, the question of value-based versus cost-based rate setting for the component-rights of a musical performance arises. In this article, we have demonstrated this value-or-cost question is a distinction without a difference....

We attempt to shed some light on the optimal design of Commission rules and practices for addressing interference disputes. Since spectrum licenses produce no benefits without large and mostly sunk investments in communications networks, our focus is on investment incentives. We argue that the...

Quality competition, by increasing sunk costs, may produce levels of concentration even higher than expected in its absence. Based on Sutton's model of endogenous sunk costs and quality competition, we show that consumers, under certain conditions, may benefit from higher industry concentration...

The United States Department of Commerce, Technology Administration provided support to the Phoenix Center to study the causes and potential solutions of the Valley of Death for technology development in the United States under Study Contract No. SB1341-05-2-0023 administered by KT Consulting,...

One of the most heated debates in the current efforts to re-write the Communications Act has been whether the federal government should impose "Network Neutrality" requirements on broadband service providers. While we argue neither for nor against the need for Network Neutrality legislation in...

In practice, copyright is treated by economists and analysts as a tradeoff between monopoly and the incentive to create new works. This tradeoff is between stark opposites – power and innovation. Yet, in reality, copyrighted works face numerous close substitutes. In this paper, we formally...