Usage-Based Pricing and Demand for Residential Broadband

  title={Usage-Based Pricing and Demand for Residential Broadband},
  author={A. Nevo and J. L. Turner and J. Williams},
  journal={IO: Theory eJournal},
  • A. Nevo, J. L. Turner, J. Williams
  • Published 2015
  • Economics, Business
  • IO: Theory eJournal
  • 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… CONTINUE READING
    90 Citations
    The Tragedy of the Last Mile: Economic Solutions to Congestion in Broadband Networks
    • 4
    • PDF
    The Tragedy of the Last Mile: Congestion Externalities in Broadband Networks∗
    • 2
    • Highly Influenced
    • PDF
    Pricing strategies and competition in the mobile broadband market
    • 3
    • PDF
    Estimating the Demand for Service Bundles Under Three‐Part Tariffs
    Tariff diversity and competition policy: drivers for broadband adoption in the European Union
    • 51
    • PDF


    Pricing Congestible Network Resources (Invited Paper)
    • 520
    • PDF
    Does Uncertainty Matter? Consumer Behaviour Under Three-Part Tariffs
    • 201
    Cellular Service Demand: Biased Beliefs, Learning, and Bill Shock
    • 193
    • Highly Influential
    • PDF
    Household Demand for Broadband Internet in 2010
    • 76
    Consumer Inattention and Bill-Shock Regulation
    • 111
    • PDF
    Sales and Consumer Inventory
    • 206
    • PDF