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

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Multiple version iconThere are 2 versions of this paper

Date Written: April 18, 2016

Abstract

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

Ford, George S., Cost or Benefit? A Review of the Consumer Federation of America's Report on Regulating Special Access Services (April 18, 2016). Phoenix Center Perspectives 16-04 , Available at SSRN: https://ssrn.com/abstract=2913139 or http://dx.doi.org/10.2139/ssrn.2913139

George S. Ford (Contact Author)

Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )

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