By Clyde Crews, Adam Theirer
This ebook explores how regimes that recognize estate rights together with the perfect to exclude opponents higher serve shoppers and innovation.
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What's Yours is Mine: Open Access and the Rise of Infrastructure Socialism
This e-book explores how regimes that recognize estate rights together with the correct to exclude opponents higher serve shoppers and innovation.
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Additional info for What's Yours is Mine: Open Access and the Rise of Infrastructure Socialism
Sample text
In addition, regulatory activity now appears to be more in line with the interests of new rivals than with those of the incumbents that once benefited from government intervention. In other words—or so the theory goes—we live in an era of ‘‘new and improved’’ publicly minded regulation that is free of the threat of capture by incumbent interests and less likely to produce anti-consumer results given the professed newfound faith in competition and markets supposedly held by many lawmakers and regulators.
25 Just before World War I, policymakers began taking steps to compel interconnection of competing systems that actually discouraged head-to-head, cutthroat competition. Brock found that ‘‘interconnection . . ’’26 Huber et al. ’’27 Worse yet, during World War I, the federal government nationalized the entire telecommunications system and began geographically averaging prices to artificially suppress rural rates. This created a serious disincentive for local telephone competition since few firms will seek to enter a market and offer service if they realize it is difficult, if not impossible, to undercut the subsidized service of the incumbent carrier.
42 Indeed, this will always be the case regardless of the shifting rationales for regulatory interventions. Open Access as a Reparations Policy Some scholars argue that open-access policies are a useful way to right the wrongs of the (regulatory) past—that is, to correct for the fact that some companies were given an unfair advantage through 32 Debunking ‘‘Natural Monopoly’’ and ‘‘Essential Facility’’ Rationales years of protected franchise monopolies and guaranteed rate-ofreturn regulation.
