1 Introduction and Overview.- 2 Industry Trends and Market Structure.- 2.1 Industry Trends.- 2.2 Congressional Expectations.- 2.3 Demand Side Considerations.- 2.4 Public Policy Issues.- 2.5 Does Size Matter?.- 2.6 RBOC Entry Into InterLATA Long Distance.- 2.7 The Future.- 3 The Stock Market Reacts.- 3.1 Introduction.- 3.2 Stock Prices.- 3.3 Events Analysis.- Appendix 3-1: Alternative Events Analysis.- 4 A Jurisdictional Model.- 4.1 Introduction.- 4.2 Benchmark Result.- 4.3 The Multiple Agent Model.- 4.4 Who Sets Wholesale Prices?.- 5 The FCC’s Efficient- Firm Standard — Telric.- 5.1 Introduction.- 5.2 Statutory And Regulatory Costing Standards.- 5.3 The Efficient-Firm vs. The Price Cap Approach.- 5.4 Strategic Behavior.- 5.5 The Paradox Of Disparate Cost Standards.- 5.6 Conclusions.- 6 Back To The Future.- 6.1 Introduction.- 6.2 Historical Notes.- 6.3 Embedded And Forward-Looking Costs.- 6.4 Methodology.- 6.5 Base Case Scenario.- 6.6 Decreasing Investment Costs.- 6.7 Asymmetric Depreciation Periods.- 6.8 Simulation Results.- 6.9 Empirical Analysis.- 6.10 Conclusions.- Appendix 6-1: Assumptions Used In The Sensitivity Analysis.- 7 Explaining State Regulatory Actions.- 7.1 Introduction.- 7.2 PCR In Theory And Practice.- 7.3 Principles To Foster Regulatory Commitment.- 7.4 The Economic And Legal FoundationsOf A Complete Price Cap.- 7.5 Policy Implications.- Appendix 7-1: Data Used In The Regressions.- Appendix 7-2: Additional Empirical Results.- 8 Conclusions.- References.- Name Index.