Alternative measured-service rate structures for local telephone service

Bridger M. Mitchell

Expert InsightsPublished 1980

An examination of several types of measured-service rate structures that could eventually supplant the flat rate and an analysis of the effects of offering consumers a choice between a flat and a measured rate. The paper concentrates on the long-term welfare effects, of alternative rates implicitly measured by consumers' plus producer's surplus. Simple assumptions are made: costs vary only with the number of subscribers and calls, and the detailed effects of consumer demand elasticities ("repression") are omitted.

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Mitchell, Bridger M., Alternative measured-service rate structures for local telephone service. Santa Monica, CA: RAND Corporation, 1980. https://www.rand.org/pubs/papers/P6495.html.
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