Usage-Based Pricing and Demand for Residential Broadband

  title={Usage-Based Pricing and Demand for Residential Broadband},
  author={Aviv Nevo and John L. Turner and Jonathan Williams},
  journal={Kauffman: Large Research Projects - NBER (Topic)},
We estimate demand for residential broadband using high-frequency data from subscribers facing a three-part tariff. The three-part tariff makes data usage during the billing cycle a dynamic problem; thus, generating variation in the (shadow) price of usage. We provide evidence that subscribers respond to this variation, and use their dynamic decisions to estimate a flexible distribution of willingness to pay for different plan characteristics. Using the estimates, we simulate demand under… Expand
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