Product Differentiation and Market Power
نویسنده
چکیده
Previous studies of the cable television industry have focused on the effects of deregulation and competition on cable service prices. These studies use either the "most popular" tier or the "lowest-priced" tier when comparing prices of different cable systems. However, these tiers often represent a different type of cable service so that previous empirical results based on the assumption that they are comparing homogeneous products are in question. The problem stems from the product differentiation by multiproduct monopolists. This paper looks at how cable operators choose different levels of service quality and its effects on prices.
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