IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v64y1988i2p102-112.html
   My bibliography  Save this article

The Welfare Costs of the Australian Telecommunications Pricing Structure

Author

Listed:
  • ROBERT ALBON

Abstract

Australian telecommunications pricing has developed in an environment which is uncompetitive, subject to pressures to cross‐subsidize and insufficiently cognizant of relevant costs and demands. STD and local call charges are too high and access charges too low. Compared with a structure which charged marginal usage costs and retrieved costs of subscribers' loops and overheads through access charges, the pricing structure has an estimated efficiency cost of about $240 m in 1985–86.

Suggested Citation

  • Robert Albon, 1988. "The Welfare Costs of the Australian Telecommunications Pricing Structure," The Economic Record, The Economic Society of Australia, vol. 64(2), pages 102-112, June.
    • Handle: RePEc:bla:ecorec:v:64:y:1988:i:2:p:102-112
    DOI: 10.1111/j.1475-4932.1988.tb02045.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1988.tb02045.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1988.tb02045.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Brown,Stephen J. & Sibley,David Sumner, 1986. "The Theory of Public Utility Pricing," Cambridge Books, Cambridge University Press, number 9780521314008.
    2. Wenders, John T. & Egan, Bruce L., 1986. "The implications of economic efficiency for US telecommunications policy," Telecommunications Policy, Elsevier, vol. 10(1), pages 33-40, March.
    3. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-597, September.
    4. Ralph Turvey, 1968. "Peak-Load Pricing," Journal of Political Economy, University of Chicago Press, vol. 76, pages 101-101.
    5. Walter Y. Oi, 1971. "A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(1), pages 77-96.
    6. John J. Beggs, 1981. "The Demand for Telephone Services in Australia and the Welfare Implications of Alternative Pricing Policies," Cowles Foundation Discussion Papers 584, Cowles Foundation for Research in Economics, Yale University.
    7. Daly, George & Mayor, Thomas, 1980. "Estimating the Value of a Missing Market: The Economics of Directory Assistance," Journal of Law and Economics, University of Chicago Press, vol. 23(1), pages 147-166, April.
    8. Arthur Hazlewood, 1950. "Optimum Pricing as Applied to Telephone Service," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 18(2), pages 67-78.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alberto Alesina & David W. R. Gruen & Matthew T. Jones, 1991. "Fiscal Adjustment, The Real Exchange Rate and Australia's External Imbalance," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 24(3), pages 38-51, July.
    2. Quiggin, John, 1997. "Efficiency versus social optimality: The case of telecommunications pricing," Information Economics and Policy, Elsevier, vol. 9(4), pages 291-308, December.
    3. Robert Albon, 1989. "The Revenue and Efficiency Implications of Timed Local Calls," Australian Journal of Management, Australian School of Business, vol. 14(2), pages 115-126, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    2. David Encaoua & Michel Moreaux, 1987. "L'analyse théorique des problèmes de tarification et d'allocation des coûts dans les télécommunications," Revue Économique, Programme National Persée, vol. 38(2), pages 375-414.
    3. Schlereth, Christian & Stepanchuk, Tanja & Skiera, Bernd, 2010. "Optimization and analysis of the profitability of tariff structures with two-part tariffs," European Journal of Operational Research, Elsevier, vol. 206(3), pages 691-701, November.
    4. Jara-Díaz, Sergio & Cruz, Diego & Casanova, César, 2016. "Optimal pricing for travelcards under income and car ownership inequities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 470-482.
    5. Hörcher, Daniel & Graham, Daniel J., 2020. "MaaS economics: Should we fight car ownership with subscriptions to alternative modes?," Economics of Transportation, Elsevier, vol. 22(C).
    6. Brown, Toby & Faruqui, Ahmad & Grausz, Léa, 2015. "Efficient tariff structures for distribution network services," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 139-149.
    7. Farhad Daruwala & Frank T. Denton & Dean C. Mountain, 2017. "One Size May Not Fit All: Welfare Benefits And Cost Reductions With Differentiated Household Electricity Rates In A General Equilibrium Model," Department of Economics Working Papers 2017-03, McMaster University.
    8. Srzich, Antony, 2000. "The Effect of Income on Optimal Two Part Tariffs," Working Paper Series 3909, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    9. Ethier, Robert G. & Mount, Timothy D., 1996. "Competitive Electricity Markets In New York State: Empirical Impacts Of Industry Restructuring," Working Papers 127907, Cornell University, Department of Applied Economics and Management.
    10. Ralph A. Winter, 2009. "Presidential Address: Antitrust restrictions on single-firm strategies," Canadian Journal of Economics, Canadian Economics Association, vol. 42(4), pages 1207-1239, November.
    11. María Angeles García Valiñas, 2004. "Eficiencia y equidad en el diseño de precios óptimos para bienes y servicios públicos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 168(1), pages 95-119, march.
    12. Srzich, Antony, 2000. "The Effect of Income on Optimal Two Part Tariffs," Working Paper Series 19008, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    13. Hörcher, Daniel & Tirachini, Alejandro, 2021. "A review of public transport economics," Economics of Transportation, Elsevier, vol. 25(C).
    14. Diakité, Daouda & Semenov, Aggey & Thomas, Alban, 2009. "A proposal for social pricing of water supply in Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 88(2), pages 258-268, March.
    15. repec:vuw:vuwscr:19008 is not listed on IDEAS
    16. José Silva Ruiz, 2010. "La eficiencia y la equidad en la fijación de precios de los servicios públicos: evolución de la teoría de la tarifa óptima en dos partes y el caso del servicio de agua potable," Revista CIFE, Universidad Santo Tomás, June.
    17. Evens Salies & Catherine Waddams, 2003. "Pricing structure in the deregulated UK electricity market," SciencePo Working papers Main hal-03592457, HAL.
    18. Atabek Atayev, 2021. "Nonlinear Prices, Homogeneous Goods, Search," Papers 2109.15198, arXiv.org.
    19. Parry, Ian W.H., 2008. "How should heavy-duty trucks be taxed?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 651-668, March.
    20. Hugh Sibly & Richard Tooth, 2014. "The consequences of using increasing block tariffs to price urban water," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), pages 223-243, April.
    21. Kilmer, Richard L. & Armbruster, Walter J., 1984. "Methods For Evaluating Economic Efficiency In Agricultural Marketing," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-9, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:64:y:1988:i:2:p:102-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.