By Michael A. Crew (auth.), Michael A. Crew (eds.)
companies to diversify might outweigh the prices of doing so, and that a few conventional regulatory issues can be excessively restrictive. The papers through Hillman, Harris, and Jang and Norsworthy, whereas all in terms of person industries, have classes for different regulated industries. Hillman's paper, "Oil Pipeline premiums: A Case for Yardstick Regulation," offers with the real subject of yardstick rules for oil pipelines. whereas his program is very particular, the capability program of yardstick legislation is going past oil pipelines. He stories the evolution within the legislation regulating oil pipelines. whereas displaying that a few growth has been made in introducing monetary potency issues into rules, he presents a cautious critique of the operation of latest law and indicates an alternate established upon a yardstick technique. His process seeks to exploit aggressive industry costs because the yardstick, with management of fee discrimination restricted to facing attainable "favoritism" to subsidiaries and associates. "Telecommunications prone as a Strategic undefined: Implications for usa Public coverage" by means of Harris and "Productivity development and Technical swap within the usa Telecommunications gear production Industries" through Jang and Norsworthy supply very important insights for telecommunications.
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South Dakota PUC Orders Intra-LATA '1 +', State Telephone Regulation Report, 12 (Mar. 23, 1989). 18. An Inquiry into IntraLATA Toll Competition and Appropriate Compensation Scheme for Completion oflntraLATA Calls by Interexchange Carriers and WATS lurisdictionality, Interim Order, Admin. Case No. 323, Phase I (Mar. 29, 1990). 19. Survey presented in In re: Investigation into Equal Access Exchange Areas, 1 + Restrictions to the local exchange companies and elimination of the access discount, Docket 880812-TP, Testimony of Alphonse Varner (Oct.
Most states that permit intraLATA competition grant LECs the exclusive right to carryall 1+ switched access traffic and 24 COMPE1TTION AND TIlE REGULAnON OF UTILITIES allow IXCs to "compete" by permitting them to carry lOXXX intraLA TA switched traffic and dedicated access traffic. As a practical matter, few telephone consumers will take the time to dial a lOXXX access code to reach an alternative IXC. 93 percent of intraLATA traffic. 22 percentage points. (Washington Utilities and Transportation Commission 1989,65) This lack of market share erosion reflects both customers' unwillingness to dial a lOXXX access code as well as customers' general lack of knowledge of LATAs and LATA boundaries.
Consider, for the moment, a case where a firm produces products x and y that are sold in rate-of-return-regulated and competitive markets, respectively, and are produced by means of distinct (separable) production technologies (implying no economies of scope) to which the labor and capital inputs can be precisely attributed. The only potential benefit to ratepayers would be if profit from the competitive market were used to subsidize production of the regulated product. S And the consumers of y are indifferent about whether the diversified finn enters their market or not, since, presumably, there exists a perfectly elastic supply of altemati ve producers possessing the identical production technology poised as potential entrants.