When national institutions do not matter : the importance of international factors : pricing policies in telecoms

Abstract

The article tests widely accepted contentions of historical institutionalism concerning the importance of national institutions for economic outcomes. The evolution of pricing policies of former monopolies in the British and French telecommunications sector between 1980 and 2000 is used as a case study for this purpose. The article examines both national institutional developments and the evolution of the prices of telecommunications services to demonstrate how this case challenges claims for the centrality of national institutions and their reforms. The conclusion then discusses the most convincing explanations of the results found and outlines the implications for historical institutionalism. It is argued, without rejecting entirely the role of national institutions, that their impacts and e the effects of cross-national variance have been counterbalanced and indeed overcome by powerful international forces. They encompass technological and economic developments as well as regulatory changes at the supranational level.