Regulators as Captives of Industry
The Deregulation Movement
If natural monopolies exist, the government should regulate firms` prices.
But there are many borderline cases in high-technology industries such as telecommunications and computing.
An important example is Cable Television.
FCC measured competition by the number of over-the-air channels.
At first, FCC did not regulate cable television companies in areas where there were more than three over-the-air channels.
Later on, the FCC raised the limit to 6 over-the-air channels.
In 1992,Congress passed a law which required the FCC to regulate
cable television firms in any case.