Price Cap Regulation of Telecommunications Services
A Long-Run Approach
Published 1988
The U.S. Federal Communications Commission has initiated a discussion about the possible use of price caps to replace rate-of-return regulation for telecommunications services. As part of that discussion, this Note offers a price cap process based on profits, unlike the price caps currently under discussion, and on a process previously designed by the author. The Note considers the importance of two sometimes overlooked issues: efficient allocation of prices, and long-term conditions including formula adjustments over time. The author argues that his process would lead to the achievement of Ramsey prices and two-part tariffs, and at lower-than-current costs. An outline of proofs is provided.
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- Copyright: RAND Corporation
- Availability: Web Only
- Year: 1988
- Pages: 49
- Document Number: N-2704-MF
Citation
RAND Style Manual
Vogelsang, Ingo, Price Cap Regulation of Telecommunications Services: A Long-Run Approach, RAND Corporation, N-2704-MF, 1988. As of September 4, 2026: https://www.rand.org/pubs/notes/N2704.html
Chicago Manual of Style
Vogelsang, Ingo, Price Cap Regulation of Telecommunications Services: A Long-Run Approach. Santa Monica, CA: RAND Corporation, 1988. https://www.rand.org/pubs/notes/N2704.html.
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