STRATEGIC BEHAVIOR AND COMPETITION IN CABLE-TELEVISION - EVIDENCE FROM 2 OVERBUILT MARKETS

This article uses evidence from case studies of Montgomery, Alabama an d Paragould, Arkansas to examine the strategic behavior of firms in th ese markets. Incumbents use a variety of tactics including price cutti ng and litigation to deter entry by a rival. These tactics and their e ffects impact on the ability of entrants to come into a market and com pete. These findings have implications for policymakers particularly i n light of the passage of the Telecommunications Act of 1996.