Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
971081 | The Journal of Socio-Economics | 2008 | 6 Pages |
Abstract
This short paper proposes a simple method of calibrating for the non-monetary costs associated with using different payment plans. These non-monetary costs often lead consumers to choose a flat-rate subscription plan rather than paying separately for each unit of consumption, despite the fact that the pay-per-use plan turns out to be cheaper ex post. The calibration results hint that these costs are relatively higher for “inexpensive” services than for “expensive” services.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Oz Shy,