Have you ever wondered how internet service providers decide what price to set for broadband access?
Professor Jon Williams of UNC Economics, along with colleagues Aviv Nevo (University of Pennsylvania) and John Turner (University of Georgia), asked this very question in an article published in the academic journal Econometrica 84(2) in 2016. That paper, “Demand for residential broadband: the impact of usage-based pricing” has been summarized in Microeconomics Insights, a blog dedicated to informing the public about issues that are, or should be, in the public’s eye. Jon’s findings have become a starting point for conversations about broadband usage and regulation in the academic microeconomic community and among government regulators. It also highlights an issue that affects most consumers. Visit Microeconomics Insights to read a very useful summary of his research on this topic.