-Best response set

This paper introduces a notion of p-best response set (p-BR). We build on this notion in order to provide a new set-valued concept: the minimal p-best response set (p-MBR). After proving general existence results of the p-MBR, we show that it characterizes set-valued stability concepts in a dynamic with Poisson revision opportunities borrowed from Matsui and Matsuyama [An approach to equilibrium selection, J. Econ. Theory 65 (1995) 415–434.] Then, we study equilibrium selection. In particular, using our notion of p-BR, we generalize Morris et al. [p-Dominance and belief potential, Econometrica 63 (1995) 145–157.] that aimed to provide sufficient conditions under which a unique equilibrium is selected in the presence of higher order uncertainty.     

Cable Television Rate Deregulation

In the 1984 Cable Communications Policy Act, cable television operators were effectively freed from rate regulation, and subsequently enjoyed monopoly franchise protection with free market pricing. In 1992, however, reregulation of basic cable service rates was established in the Cable Consumer Protection and Competition Act. The argument for reimposing regulation was that a substantial increase in basic cable rates had occurred post–deregulation. Yet the efficacy of rate controls upon an industry which has substantial freedom to adjust product quality is theoretically ambiguous. This study examines simple price, quality, and output evidence to determine how rate deregulation impacted consumers. It finds support for the view that rate controls did not lower quality–adjusted prices and are best explained as tools for influencing rent distribution across interest groups