Broadband: Should We Regulate High-Speed Internet Access? by Robert W. Crandall, James H. Alleman

By Robert W. Crandall, James H. Alleman

Supplying a cutting-edge research of the economics of broadband, researchers and students give a contribution essays with diverse and infrequently opposing perspectives on the best way to control high-speed net carrier. Alleman (Columbia Institute of Tele-information) and Crandall (economic experiences, Brookings establishment) edit 12 essays with subject matters together with the call for for bandwidth: facts from the INDEX venture; pageant and rules in broadband communications; and the monetary results of broadband rules

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Structural Demand Estimates Reduced-form estimates suggest that the users behaved in an economically sensible way. Hence it makes sense to model their choice behavior in more detail so as to extrapolate to other environments. Assume that users got utility from the bits transferred, u(x), and the time, t, it took to transfer them. The cost of transfer time has two components: the subjective cost of time, c, which varies according to users and circumstances, and the dol- 0894-03-Brkgs/Crandall 11/06/02 14:41 Page 45     Table 3-2.

The cost of transfer time has two components: the subjective cost of time, c, which varies according to users and circumstances, and the dol- 0894-03-Brkgs/Crandall 11/06/02 14:41 Page 45     Table 3-2. 17 lar cost, which depends on the price of the chosen bandwidth, p(b*). If b* is the chosen bandwidth, optimization implies that u( x ) – [c + p(b * )]t – u( x ) – [c + p(b )]t for all bandwidths, b. Since bandwidth is by definition bits for each unit of time, we have t = x /b.

33. Hausman (1999). 34. James K. Glassman and William H. com); Glassman (2001). But see Hazlett (2001). Jeffrey K. MacKie-Mason, however, estimates that because broadband cable infrastructure investment increases cable system returns by 60–250 percent, “any” reduction in incentives caused by a regulatory taking of cable operator property through access requirements would be inconsequential. pdf). 35 Consider for example the vastly disparate First Amendment protections of the various media: print media and cable television have roughly the same strong protection from government regulation of content; wireless broadcasters have far less protection.

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