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2007•IEEE MicroRequires access

Dog Days for Broadband

Shane M. Greenstein

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Abstract

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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What this paper is about

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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Available abstract

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.

Key concepts: Broadband, Liberian dollar, Revenue, Computer science, Broadband networks, Telecommunications, Column (typography), Economics

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