Local measured service revisited: A Southern Wisconsin test case
Pricing local telephone service on a usage-sensitive basis has long been thought to have welfare-enhancing effects over the traditional fiat-rate pricing scheme. The authors examine a new data set containing observations of residential and business calling patterns both before and after a switch to...
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Veröffentlicht in: | Atlantic economic journal 1998-06, Vol.26 (2), p.206-213 |
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creator | Isely, Paul Roelofs, Matthew |
description | Pricing local telephone service on a usage-sensitive basis has long been thought to have welfare-enhancing effects over the traditional fiat-rate pricing scheme. The authors examine a new data set containing observations of residential and business calling patterns both before and after a switch to measured service. For a rural area of south-central Wisconsin, the data provide a rare opportunity to study the same consumers both before and after such a pricing change is made. Comparing the measured system used in this area to the previous literature shows that, even though the current system does not contain all the elements of a theoretically optimal pricing scheme, significant welfare gains are still achieved. |
doi_str_mv | 10.1007/BF02299362 |
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language | eng |
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source | RePEc; PAIS Index; Business Source Complete; SpringerLink Journals - AutoHoldings |
subjects | Economic aspects Economic models Local loop Prices and rates Pricing Pricing policies Statistical analysis Studies Telephone Telephone services Welfare economics |
title | Local measured service revisited: A Southern Wisconsin test case |
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