This research provides an analysis of the cable television industry in the United States. The findings of this analysis are presented in two major discussions. These discussions deal with the economics of the industry, and the regulation of the industry.
THE ECONOMICS OF THE CABLE TELEVISION INDUSTRY
The economics of the cable television industry are consi dered in three contexts. These contexts are (1) the conversion of a public good to a private good, (2) the structure of the industry, and (3) problems confronting the industry.
The initial consideration with respect to the economics of the industry lies at the theoretical level, wherein the exist ence of the industry transformed an essentially public good into, at least partially, a private good. Public goods are those which, because their benefits or use may not be withheld from a single person without withholding them from all persons, must be supplied communally (Gwartney, Stroup, & Studenmund, 1990). National defense, street lighting, general police pro tection, and scientific theory are oft cited examples of public
1 2goods. A television signal broadcast over the airwaves without any form of interference of reception is another example of a good which, if not a pure public good, is at least a near, or quasi, public good.
The definition of public goods does not demand that the actual provision of the good must be performed in the public sector. As an example, street lighting could be provided by a private sector electrical utility on a contract basis. What the definition of public goods does demand, however, is that the good must be paid for communally. Thus, in the example of street lighting provided by a private sector electrical utility on a contract basis, the cost of providing the service would be supplied by the taxing jurisdiction contracting for the ser vice. There would be no way for the electrical utility to deny the street lighting to ind...