By Robert W. Crandall, James H. Alleman
Delivering a state of the art research of the economics of broadband, researchers and students give a contribution essays with different and infrequently opposing perspectives on how one can keep watch over high-speed web provider. 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 undertaking; pageant and legislation in broadband communications; and the monetary results of broadband law
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Additional info for Broadband: Should We Regulate High-Speed Internet Access?
Use of waiting time for other activities. Not all of the time spent waiting for a download is wasted, since it is common to engage in other activities. Users in this project tended to leave the eight-kilobit service on all the time so that e-mail could be downloaded in the background. Because of this multitasking capability, the value of time saved could easily have been lower than one might think. A closely related point is that 0894-03-Brkgs/Crandall 11/06/02 14:41 Page 50 . . certain activities, such as web surfing, tend to involve bursts of activity followed by a period of time spent in absorbing the acquired material.
Users’ packets were routed through a billing gateway, which had two functions. First, it measured certain aspects of user behavior, which were recorded in a database. Second, it could offer various qualities of service by selectively degrading how the packets were handled. For example, even though the actual ISDN bandwidth was always 128 kilobits a second, the billing gateway could buffer packets so that actual throughput was any desired speed less than this. The experiments were limited to six speeds: 8, 16, 32, 64, 96, and 128 kilobits a second.
30* *Significant at 95 percent. omitted. No attempt was made to restrict coefficients across equations since this regression is intended only to show the patterns of demand. Note that the diagonal terms (the own-price effects) are all negative and statistically significant. The subdiagonal terms are the cross-price effects for slower bandwidths. The positive numbers indicate that one-step slower bandwidths were perceived as substitutes for the chosen bandwidth. This sign pattern is quite plausible.