IDEAS home Printed from https://ideas.repec.org/a/ris/ecoint/0119.html
   My bibliography  Save this article

The Implicit Marginal Valuation of Cable Service in the United States

Author

Listed:
  • Uri, Noel D.

    (Industry Analysis Division, Media Bureau, Federal Communications Commission)

Abstract

This paper estimates the implicit marginal value of channel offerings by cable systems in the United States. Hedonic analysis is a convenient framework in which to explore the relationship between the price of cable service and the channels offered by a cable system. Two separate hedonic equations are estimated - one for the price of analog cable service and one for the price of digital cable service. With regard to the price of analog cable service, the implicit marginal valuation is statistically significant at the five percent level and positive for just seven of 121 channel offerings and negative for eleven channels. For the price of digital cable service, the implicit marginal valuation is statistically significant and positive for just six of 88 channel offerings and negative for seven channels. The results suggest that a subscriber’s utility would be enhanced by a pricing structure different from the typical approach used by cable systems today of offering a bundled package consisting of several channels. One alternative is to allow consumers to subscribe to just those programming services for which they have a positive implicit marginal value (i.e., an a la carte pricing structure).

Suggested Citation

  • Uri, Noel D., 2005. "The Implicit Marginal Valuation of Cable Service in the United States," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 58(1), pages 79-115.
    • Handle: RePEc:ris:ecoint:0119
    as

    Download full text from publisher

    File URL: http://www.iei1946.it/RePEc/ccg/URI%2079_115.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Jerry Ellig & Paul LaFontaine & Wayne Leighton & Eric Ralph & Sean Sullivan, 2018. "Economics at the FCC, 2017–2018: Internet Freedom, International Broadband Pricing Comparisons, and a New Office of Economics and Analytics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 53(4), pages 681-707, December.

    More about this item

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    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:ris:ecoint:0119. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Angela Procopio (email available below). General contact details of provider: https://edirc.repec.org/data/cacogit.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.