nep-ind New Economics Papers
on Industrial Organization
Issue of 2015‒07‒18
two papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Usage-Based Pricing and Demand for Residential Broadband By Aviv Nevo; John L. Turner; Jonathan W. Williams
  2. Patent Portfolio Management of Sequential Innovations: Theory and Empirics By Jinyoung Kim

  1. By: Aviv Nevo; John L. Turner; Jonathan W. Williams
    Abstract: We estimate demand for residential broadband using high-frequency data from subscribers facing a three-part tariff. The three-part tariff makes data usage during the billing cycle a dynamic problem; thus, generating variation in the (shadow) price of usage. We provide evidence that subscribers respond to this variation, and use their dynamic decisions to estimate a flexible distribution of willingness to pay for different plan characteristics. Using the estimates, we simulate demand under alternative pricing and find that usage-based pricing eliminates low-value traffic. Furthermore, we show that the costs associated with investment in fiber-optic networks are likely recoverable in some markets, but that there is a large gap between social and private incentives to invest.
    JEL: L1 L13 L96
    Date: 2015–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21321&r=ind
  2. By: Jinyoung Kim (Department of Economics, Korea University, Seoul, Republic of Korea)
    Abstract: This paper develops a model for understanding a firm¡¯s decisions regarding the maintenance (renewal) and patenting of sequential innovations and studies how these decisions are affected by the model¡¯s parameters such as maintenance fees and filing fees. The model offers a discriminating testable hypothesis, predicated on the cross-price effects, to identify complementarityor substitutability across sequential innovations. Our empirical results show that higher filingfees are associated with lower probability of patent renewal, which corroborates the case of complementarity in sequential innovations.
    Keywords: Renewal, Patenting, Sequential innovations, Patent portfolio, Patent maintenance fees, Application filing fees
    JEL: O32 O34
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:iek:wpaper:1504&r=ind

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