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Dog Days for Broadband

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1 Author(s)
Greenstein, Shane ; Kellogg Graduate School of Management

It is essential to get the proportionate units right in economic measurement. The present analysis of dial-up and broadband markets, however, contains a problem with its units. A one-dollar decline from $20 in dial-up prices is treated as equivalent to a two-dollar decline from $40 in broadband prices. This assessment undervalues broadband revenues, because it doesn't factor in the greater satisfaction per dollar experienced by converts from dial-up to broadband. In this column, Greenstein seeks to correct the units of comparison.

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Micro, IEEE  (Volume:27 ,  Issue: 5 )