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The effects of deregulating cable television: Evidence from the financial markets

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Abstract

This paper uses financial market data to study the effects of deregulation on the expected future profitability of United States cable television system operators. The results suggest that although deregulation has enhanced the profitability of these firms, the effect was not anticipated at the time when the deregulatory legislation was passed. Two possible explanations for the unexpected increase in economic rents accruing to cable system shareholders are offered.

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Authors and Affiliations

  1. Vanderbilt University Owen Graduate School of Management, 37203, Nashville, TN, USA

    Robin A. Prager

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  1. Robin A. Prager
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Prager, R.A. The effects of deregulating cable television: Evidence from the financial markets. J Regul Econ 4, 347–363 (1992). https://doi.org/10.1007/BF00134927

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