Cost or Benefit? A Review of the Consumer Federation of America's Report on Regulating Special Access Services
Phoenix Center Perspectives 16-04
11 Pages Posted: 8 Feb 2017
Date Written: April 18, 2016
In this perspective, I provide a detailed review of the Consumer Federation of America’s attempt to calculate a “big number” in the context of the FCC’s development of a new regulatory scheme for special access services. As shown here, CFA’s claim is based on a method that is internally inconsistent, economically unsound, and computationally flimsy. Justifiable changes in CFA’s assumptions results in multi-billion-dollars reductions in economic output and the method leads to ridiculous policy prescriptions.
Keywords: FCC, Special Access, CFA, Consumer Federation of America, Consumer Welfare, Demand Elasticity
JEL Classification: L96
Suggested Citation: Suggested Citation