The Economics of Shared Data Plans

2015-07-12 - Business Models / Literature

In this paper, we introduce a simple analytical framework to model the tradeoffs between choosing a shared data plan and individual data plans for different devices from a consumer perspective. In particular, we show that even in this simplified setting, this choice is non-trivial for a consumer, with a complex dependency on users’ psychology of self-censoring their usage upon exceeding their data caps. Restricting the consumer’s choice by eliminating individual device data plans can therefore hurt certain types of consumers.

› tags: consumer welfare / economics / mobile communication / price caps /

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