From universal service to universal connectivity

Two features of the century-old policy goal of promoting universal telephone service in the United States have been enduring. Policymakers have focused on (1) wireline telephone (and more recently, fixed-line broadband) services and (2) households. The widespread adoption of mobile telephones compels a fresh examination of this focus. We construct a new measure of universal connectivity which accounts for consumers’ choices of communications technologies and for their geographic mobility over the course of the day. This measure, in turn, compels a conceptual and empirical investigation of the determinants of mobile telephone diffusion within families. Our estimations of intra-household demand for mobile service permit us to develop simulations that estimate the economic impact of modernizing a key element of existing universal service policy (viz., the Lifeline Program) to reflect the goal of improving individual connectivity. We find that a policy expansion from a single subsidy per household to multiple subsidies per eligible household members would increase mobile subscriptions by 2.25 million and Lifeline costs by $250 million

Incentives to quality and investment : evidence from electricity distribution in Italy

This paper investigates the relationship between output-based incentives for service quality and the use of capital and non-capital resources to meet regulatory targets in the electricity industry. To conduct the empirical analysis we use a dataset collected with the support of the Italian energy regulatory authority, comprising micro data on monetary incentives and physical assets for the largest electricity distribution operator in Italy (86 % of the market). Our results show that physical assets and operational expenditures do affect service quality. Moreover, when we investigate causality in the relationship between incentives to quality and the use of capital and non-capital resources, we find that incentives Granger-cause capital expenditures ( and not vice-versa). Finally, our results reveal an asymmetric effect of rewards and penalties on capital expenditures' decisions across areas with different quality levels. From these findings, we derive several policy implications.Italian Regulatory Authority for Electricity, Gas and Wate

Marketing research on product-harm crises: a review, managerial implications, and an agenda for future research

A product-harm crisis is a discrete event in which products are found to be defective and therefore dangerous to at least part of the product’s customer base. Product-harm crises are not only dangerous for consumers; they also represent a major threat to the reputation and equity of brands or companies, which often struggle with how to best respond. The marketing literature has witnessed a surge in interest on the consequences of product-harm crises for a variety of stakeholders, including consumers, the brand or company itself, its investors, as well as competitors. This article offers a systematic review of research on product-harm crises in the marketing literature. We discuss the antecedents and consequences of product-harm crises, their moderators and mediators, and the theories and methodologies used. We identify commonalities and differences between the studies, as well as gaps in the literature and avenues for future research. Finally, we synthesize the managerial implications across studies