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Full-Text Articles in Law

Cap-Sized: How The Promise Of The Price Cap Voyage To Competition Was Lost In A Sea Of Good Intentions, Gregory J. Vogt Mar 1999

Cap-Sized: How The Promise Of The Price Cap Voyage To Competition Was Lost In A Sea Of Good Intentions, Gregory J. Vogt

Federal Communications Law Journal

This Article explores the Federal Communication Commission’s efforts to regulate into being marketplace economic forces through price cap regulation. A comprehensive analysis of the history and policies behind price cap regulation of LECs offers guidance for the future. Ultimately, while progress towards local exchange competition has been made, certain important adjustments should be implemented to allow price caps to achieve their full potential. These changes, consistent with the original theory of price caps, will in turn help speed the transition to competition.


Limiting Patentees' Market Power Without Reducing Innovation Incentives: The Perverse Benefits Of Uncertainty And Non-Injunctive Remedies, Ian Ayres, Paul Klemperer Jan 1999

Limiting Patentees' Market Power Without Reducing Innovation Incentives: The Perverse Benefits Of Uncertainty And Non-Injunctive Remedies, Ian Ayres, Paul Klemperer

Michigan Law Review

Uncertainty and delay in patent litigation may have unforeseen virtues. The combination of these oft-criticized characteristics might induce a limited amount of infringement that enhances social welfare without reducing (or without substantially reducing) the profitability of the patentee. Patent infringement is generally viewed as socially inefficient because infringement reduces the patentee's ex ante incentive to innovate. Limited amounts of infringement combined with increased patent duration, however, can substantially reduce the distortionary ex post effects of supracompetitive pricing without reducing the patentee's ex ante incentives to innovate. Indeed, this Article derives a legal regime that preserves the incentive to innovate by …