* Joseph Stiglitz is Chairman of the President's Council of Economic Advisors (CEA), and Joan Kenney professor of economics at Stanford University (on leave). Marius Schwartz is a senior staff economist, CEA, and professor of economists at Georgetown University (on leave). Eric Wolff is a staff economist, CEA, and a Ph.D. student at the Sloan School of Management at MIT (on leave).

The views expressed in this paper do not necessarily reflect the position of the United States Government or any of its agencies.

For helpful comments and discussions, we thank, without implicating, Jonathan Baker, James Ball, Tim Brennan, Robert Gillingham, Steven Lett, Olga Madruga-Forti, Edward Murphy, Thomas Spavins, and Carl Willner.

** This is a slightly revised version of a paper distributed at an Organization for Economic Cooperation and Development (OECD) Ad Hoc Meeting of Experts on Competition in Satellite Services in Paris on June 15, 1995.

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