This article provides a review and critique of the empirical literature that examines the effects of incentive regulation on retail telephone service quality in the United States. The literature provides mixed findings. Some dimensions of service quality appear to improve under incentive...

We examine the impact of incentive regulation—price regulation and earnings sharing regulation—on retail service quality in the U.S. telecommunications industry between 1991 and 2002. We find that incentive regulation is associated with significantly higher service quality on several...

Incentive regulation in the form of price caps was adopted for interstate access service in 1991 as a way to provide local exchange carriers with an incentive to improve their productive efficiency. An issue that has arisen with the adoption of price cap regulation is whether a deterioration of...

Price caps (also known as RPI-X or incentive regulation) encourage regulated companies to cut costs through the profit incentive, by fixing revenues irrespective of the company's own costs for a certain period. However, eventually, cutting costs become less important than incurring costs to...

Since US deregulation, over 200 airlines have started up and failed (Rosen, 1995). While competitive pressures and economic conditions were a factor in the failure of many carriers, the issue of rapid growth and service quality has been blamed for the demise of these carriers. This paper...

Since US deregulation, over 200 airlines have started up and failed (Rosen, 1995). While competitive pressures and economic conditions were a factor in the failure of many carriers, the issue of rapid growth and service quality has been blamed for the demise of these carriers. This paper...