25,382 research outputs found

    An Economic Analysis of the Receiver Pays Principle

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    This paper is to examine the effect of the receiver pays principle (RPP) on the calling price, social welfare and interconnection charge. A significant trouble with introducing this system in telecommunications pricing is the possibility that the receiving party may refuse to receive a call if the charge he has to bear is very high. We find the condition for no calls to be refused and show that the profit maximizing prices charged to the calling party and the receiving party must satisfy this condition. We demonstrate that the calling price under RPP must be lower than the price under the caller pays principle (CPP), that the profit of a firm will be increased under RPP, but that the consumer surplus will not necessarily be increased under RPP despite the lowered calling price. Also, we show that, if the demand function is linear, the reciprocal interconnection charge under RPP is higher than under CPP.

    Pricing the last mile in the postal sector

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    Traditionally, pricing of postal services was fully sender based. We analyze a potential alternative consisting of a two-part tariff where the sender is charged reduced postage while the recipient is charged a yearly fixed fee.Pricing, Two-part tariff, Universal Service, Receiver Pays Principle

    Consumer preferences and last mile pricing in the postal sector

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    The paper analyzes consumer preferences towards a potential two-part tariff in the postal sector. Based on the empirical results we analyze the welfare effects of a two-part tariff when applied in the Swiss letter market.Pricing, Two-part tariff, Universal Service, Receiver Pays Principle, Consumer Preferences

    Pricing in competitive two-sided mail markets

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    The paper analyzes optimal pricing strategies in liberalized two-sided mail markets. Our results tell a cautionary tale with respect to applying two-part tariffs in postal markets, especially for delivery into P.O. box es.two-sided markets, pricing, two-part tariffs, P.O. box

    Access and Interconnection Pricing Issues in Telecommunications

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    Telekommunikation, Regulierung, Preis, Telecommunications, Regulation, Price

    On-Net/Off-Net Price Discrimination and 'Bill-and-Keep' vs. 'Cost-Based' Regulation of Mobile Termination Rates

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    This paper surveys the recent literature on competition between mobile network operators in the presence of call externalities and network effects. It shows that the regulation of mobile termination rates based on “long-run incremental costs” increases networks’ strategic incentives to inefficiently set high on-net/off-net price differentials, thus harming smaller networks and new entrants. The paper argues in favor of a “bill-and-keep” system for mobile-to-mobile termination, and presents international evidence in support of this conclusion.mobile termination, network effects, call externalities, bill-and-keep

    Spam - solutions and their problems

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    We analyze the success of filtering as a solution to the spam problem when used alone or concurrently with sender and/or receiver pricing. We find that filters alone may exacerbate the spam problem if the spammer attempts to evade them by sending multiple variants of the message to each consumer. Sender and receiver prices can effectively reduce or eliminating spam, either on their own or when used together with filtering. Finally, we discuss the impli- cations for social welfare of using the different spam controls.Spam; filtering; email; receiver pricing; sender pricing
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