Title

Taxation by regulation and regulation by taxation: The case of local cable TV regulation

Authors

Authors

Y. Otsuka;B. M. Braun

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Rev. Ind. Organ.

Keywords

consumer welfare; regulation by taxation; taxation by regulation; FRANCHISE MONOPOLY; TELEVISION; INDUSTRY; DEMAND; CATV; Economics; Management

Abstract

Until late 1986, municipalities played a major role in cable television regulation. Municipalities not only regulated pricing and quality decisions but also taxed cable systems in the forms of in-kind and in-cash concessions. These activities appear to fit well with the concept of taxation-by-regulation, which concludes that consumer welfare is reduced because of the rent seeking behavior of local politicians. At the same time however, the notion of regulation-by-taxation is equally plausible. That is, politicians may use taxation as a means to regulate the activity of a monopoly by limiting monopoly rents and improving consumer welfare. This article empirically separates these two effects and investigates the implications for consumer welfare.

Journal Title

Review of Industrial Organization

Volume

21

Issue/Number

1

Publication Date

1-1-2002

Document Type

Article

Language

English

First Page

21

Last Page

40

WOS Identifier

WOS:000176415200003

ISSN

0889-938X

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