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Issue No. 05 - September/October (2007 vol. 27)
ISSN: 0272-1732
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. , pp. 112, 111, September/October 2007, doi:10.1109/MM.2007.82
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