Many believe that government intervention by enforcing anti-trust laws or legislating against monopolies is a good solution to balance the negative effects of the increased market share of few players in the market.

1- Investigate the effects of the U.S. Telecommunications act of 1996, signed by President Bill Clinton.

2- What were the ultimate effects of that legislation in terms of its effects on market concentration, prices, efficiency, and welfare?

3- What do you conclude about the role of government intervention based on this example?

4- Do you have any alternative solutions?