Journal
TELECOMMUNICATIONS POLICY
Volume 38, Issue 11, Pages 1035-1045Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.telpol.2014.06.004
Keywords
Broadband; Demand; Peak; Usage-based pricing
Funding
- National Science Foundation [SES-1324717]
- Cable Television Laboratories, Inc.
Ask authors/readers for more resources
We analyze subscriber usage data from an Internet Service Provider that sells service using three-part tariff and unlimited plans. Subscribers facing three-part tariffs have lower average usage than subscribers on unlimited plans, and differences among heavy users explain nearly all the overall difference. Hence, the three-part tariff saves network costs and narrows the gap, between light and heavy users, in price per Gigabyte used. However, subscribers facing three-part tariffs cut usage similarly during peak and off-peak hours. Since off-peak usage adds no network costs, these off-peak usage reductions lower welfare. Differentially pricing peak usage could further enhance efficiency. (C) 2014 Elsevier Ltd. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available