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Issue No.05 - September/October (2007 vol.27)
pp: 112, 111
Shane Greenstein , 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.
economics, Internet access, broadband, gross domestic product
Shane Greenstein, "Dog Days for Broadband", IEEE Micro, vol.27, no. 5, pp. 112, 111, September/October 2007, doi:10.1109/MM.2007.82
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