ABSTRACT

S ince the late 1970s, deregulation has been a dominant policy watchword. Thepast 20 years have seen the elimination of price and entry regulations in anumber of industries, notably airlines, banking, and long-distance telephone service. One major lesson from this experience, particularly from telecommunications, is that the transition from having the government set prices in an industry to letting the market set them goes much more easily if it is complete rather than partial.