The Role of Incentives for Opening Monopoly Markets: Comparing GTE and BOC Cooperation with Local Entrants

摘要

While the 1996 Telecommunications Act requires all incumbent local telephonecompanies to cooperate with local entrants, section 271 of the Act provides theBell companies (but not GTE) additional incentives to cooperate. Using anoriginal data set, I compare the negotiations of AT&T, as a local entrant, withGTE and with the Bell companies in states where both operate. My resultssuggest that the differential incentives matter: The Bells accommodate entrymore than does GTE, as evidenced in quicker agreements, less litigation, andmore favorable prices offered for network access. Consistent with this, thereis more entry into Bell territories