Telecommunications Pricing
Theory and Practice

Bridger M. Mitchell (Author), Ingo Vogelsang (Author)

9780521416672, Cambridge University Press

Hardback, published 29 November 1991

328 pages
23.6 x 15.8 x 2.4 cm, 0.608 kg

"...an excellent survey of the theoretical literature on optimal pricing of utilities (with their own applications to telecommunications) coupled with a very up to date and fascinating discussion of actual pricing policies by local exchange and interexchange carriers. It is an excellent addition to previous books on regulation, but is particularly useful to those who want an overview of the current state of telecommunications economics." Journal of Economic Literature

The past decade has witnessed a surge of pricing innovations in the U.S. telecommunications industry. This book systematically reviews recent innovations in the economic theory of pricing and extends results to the conditions which characterise telecommunications markets. The implementation of normative pricing theory is examined in selected US telephone tariffs, providing a rich and diverse data base and laboratory for examining the practical consequences of pricing innovations. The authors develop and illuminate the relationships between the normative economic theory of pricing - with its objectives of social welfare, economic efficiency, and fairness - and telecommunications pricing as it is practised by business and regulators. The general theoretical pricing principles and lessons of US pricing experience discussed are directly applicable to telecommunications services in other countries, and to numerous other industries including electricity, gas, rail and air transport, and postal services, as well as economists studying the economic theory of pricing.

List of figures
List of tables
Acknowledgments
Part I. Pricing and Telecommunications: 1. Introduction
2. Telecommunications production, costs, and pricing
Part II. Recent Development in the Normative Economic Theory of Tariffs: 3. Types of tariffs
4. Linear tariffs
5. Nonlinear tariffs
6. Cost-based tariffs
Part III. Telephone rate Structures in the United States: 7. Regulation and US retail rates
8. Optional calling plans
9. Business bulk-rate tariffs
10. Pricing of carrier services
11. Social tariffs
Part IV. Synthesis: 12. Synthesis of theory and practice
Appendix
Bibliography
Index
Selected list of RAND books.

Subject Areas: Economic theory & philosophy [KCA]