Usage-Based Pricing and Demand for Residential Broadband ∗

  title={Usage-Based Pricing and Demand for Residential Broadband ∗},
  author={Aviv Nevo and Leanne Turner},
The increasing use of the Internet creates a need to manage traffic while preserving equal treatment of content. We estimate demand for residential broadband, using high-frequency data from subscribers facing a three-part tariff, and use the estimates to study the welfare implications of usage-based pricing, a commonly offered solution to network congestion. The three-part tariff makes data usage during the billing cycle a dynamic problem; thus, generating variation in the (shadow) price of… CONTINUE READING
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