Influences at play in the early 1990s were only augmented when Congress passed the Telecommunications Act of 1996, allowing “competitive distribution technologies…to compete with traditional cable and direct satellite broadcast in what had been an exclusive industry;” as a result, the industry engaged in a frenzy of investment and consolidation. Operators with the means began to upgrade their networks to provide high-speed Internet, telephony, and digital cable via broadband, as well as value-added services like video-on-demand and interactive TV; those left out were forced to consolidate or face elimination. Consequently, the top eight cable operators went from controlling approximately 53% of the industry in 1990, to 79% in 2001.…
Facts: Gasoline retailers accused the OPEC member nations of fix pricing of crude oil and refined petroleum products in the US. The appellants argued that the district court mischaracterized their complaint as alleging a conspiracy among sovereign nations to fix prices via production. They argued that the consolidated complaint alleges that commercial corporations, rather than governments, have taken over the production of crude oil.…
Similarly, the economic issues in the industry are also mostly concerned with deregulation. The evolution of industry structure plays an important role in determining the robustness and stability of lower airfares in unregulated markets (2000). Deregulation also keeps airline fares so low as compared to that of other countries. The reason for this is because despite the failure of most entrants since deregulation, investors continue to create new airlines. There is substantial evidence that entry, particularly by low-cost, low-fare airlines, has a substantial effect in constraining fare levels in markets served by the new carriers (2000). The second reason is that some in the industry have argued that financially marginal carriers may act in ways that depress prices below competitive levels, inducing contagion in financial distress (2000). In addition, some industry participants have argued that financially distressed carriers have cut prices in an effort to raise short-term cash, depressing market prices below efficient levels and threatening the financial security of healthy carriers. Another economic concern is the fact that the airline economy of the US is in a huge upset after the September 11 attack. Some of the companies declared bankruptcy while others are still struggling to survive (2003).…
* price fixing: industry leaders set inflated prices & competitors adjust their own prices accordingly…
2. US market began saturating: long-standing competition on the market coupled with growing demand and consumer selectivity has led to further squeezing margins and forced companies to seek for diversification of revenue streams –by entering non-traditional cable markets, capturing smaller niches, or expanding overseas.…
Spendy but indispensable: Breaking down the full $650 cost of the iPhone 5 (2013, July). Digital…
The article “Why Canadian Cable Companies and Telecoms Are in Trouble” by Sean Michael, assists readers to understand the business of cable companies and Telecoms and the reasons for why the outlook for the Canadian companies does not look too well. Currently, Canadian firms have been protected from real foreign competition with the help of foreign ownership restrictions. However, if the Conservative majority government has their way, the Canadian telecom and media companies such as Rogers, Bell, and Shaw, will face serious problems and threats to their business. Liberalization will further accelerate the destruction of the telecom business model in Canada, while new developments in internet video technology add on to their list of problems.…
*The airline industry operates like the veins of the United States by pumping precious cargo throughout the country. Most *people don’t realize how different the airlines were a few decades ago. The entire industry was regulated by the government. Regulation is usually considered a more socialistic liberal idea that is opposed by conservative capitalists. Although I personally believe in a government with a small limited *role* in our daily lives, I have come to the conclusion that the airline industry is a rare exception that needs to return to regulation which would benefit the airlines and the consumers in numerous ways.…
12. Simon Romero and Seth Schiesel, “Hubris and the Fall of a Telecommunications Empire,” The New York Times (March 3, 2004), p. C1.…
The essence of an oligopolistic market is that there are only a few sellers. The actions of any one seller in the market can have a huge impact on the profits of all the other sellers. Oligopoly firms are self independent in such a way that competitive firms are not. Each firm in an oligopoly should consider how its decision might affect the production decisions of all the other firms. (Mankiw, 2009, 2007) This essay will discuss an oligopoly on Cox Communications. Cox communications is a full service provider of telecommunications products, Cox offers an array of services, including Cox cable, advanced digital video programming services under the Cox Digital Cable Brand, high speed internet access under the brand Cox high speed internet, and commercial voice and data services via Cox Business Services. (Cambell, 2009) In addition Cox is an investor in programming networks including Discovery Channel.…
We all are the captive audience to the Internetand we are being pons to big cabel companies by Comcast and Time Warner…
1. If a customer places a buy order for one millisecond only on an electronic limit order…
The Market Revolution was the economic push that America so desperately needed in the early nineteenth century. The innovations and inventions in transportation, communication, and technology during this time period couldn’t have come at a better time in U.S. history. Roads and railroads were both improved upon and new ones were built to help connect the interior of the U.S. The completion of the Erie Canal opened water transportation from New York to the Great Lakes and eventually to the Ohio and Mississippi valleys. The telegraph was invented and so to was the cotton gin. The factory system was growing because of the large demand for cotton. All this came at a perfect time in our history because this growth of land and wealth helped to most importantly stabilize our government. The three major reasons for the market revolution are transportation, communication, and technology.…
“Open markets, it is believed, provide fertile ground for a healthy economy by encouraging mew investment, job creation, stable prices, and a reliable marketplace” (Monopolies and antitrust, 1999). Antitrust laws are able to regulate the businesses so that no company can be the sole producer of a product. The term antitrust comes from the nineteenth century when “the trusts single-handedly controlled the nation’s most important markets, crushing all competitors, dictating prices, and erratically supplying goods and services to consumers” (Monopolies and antitrust, 1999). In a time when the nation was moving from agriculture to industry base, the lack of legal rules paved the way for the trusts such as Standard Oil and J.P. Morgan. They fixed their prices to eliminate their competitors, and then when they were out of business, the big businesses would increase their prices back up. “Many Americans began denouncing the trusts as the enemy of civil society and free enterprise, the press described Stand Oil as a menacing octopus with tentacles stretching across the country, and political unrest exacerbated the need for government intervention” (Kleiner, 2011). “Consumers were powerless, as were…
Without competition and diverse product lines, a stagnant market place smothers retailer’s ability to offer strategic promotions and incentives to the market.…