Will competition benefit customers?

Yes. Published research shows that customers of other restructured industries have enjoyed more and better services and lower prices. A study by economists from the Brookings Institution and the Center for Market Processes supports this point. Customers of five recently restructured industries analyzed in the study experienced significant price reductions. And the savings increased over time. After dropping up to fifteen percent in two years after restructuring, prices plunged 25 to 50 percent after ten years. Lower prices have not been the only benefit for customers of other restructured industries. Customers have also enjoyed more and better services. Consider telecommunications. Previously stuck with black, rotary phones, customers now enjoy voice mail, caller ID, call waiting, fax, modem, and cellular service options, as well as choice in their long distance provider.

For more information, see EPSA Memo on the Benefits of Competition.