The Contributing Role of the Regulatory Environment
Abstract
This paper analyzes the contributing role which the regulatory environment plays in shaping the assumptions made for current and planned fiber optic cable investments in the Atlantic Ocean. The conceptual model is simple and allows for an effective and systematic analysis of the situation. The model first suggests that certain economic factors exist that are significant to the investor's decision - in this case demand estimations, profit, technological development, and the role of satellites. Then the model proposes that the regulatory environment can alter a carrier's expectations regarding any of the factors by sending certain signals to industry (especially through the requirements it imposes, its expressed views and decisions). That is, the way an industry is regulated may potentially alter demand expectations, profit margins, the pace of technological development and the future role of satellite. It is this potential regulatory intervention and incentive-making, as it can affect investment decisions, that is the focus of this exercise.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 09, 1991
- Accession Number
- ADA239313
Entities
People
- Nicole Morton
Organizations
- Air Force Institute of Technology