Usage-Based Pricing and Demand for Residential Broadband

@article{Nevo2015UsageBasedPA,
  title={Usage-Based Pricing and Demand for Residential Broadband},
  author={A. Nevo and J. L. Turner and J. Williams},
  journal={IO: Theory eJournal},
  year={2015}
}
  • 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
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