Dog Days for Broadband

It is essential to get the proportionate units right in economic measurement. The present analysis of dial-up and broadband markets, however, contains a problem with its units. A one-dollar decline from $20 in dial-up prices is treated as equivalent to a two-dollar decline from $40 in broadband prices. This assessment undervalues broadband revenues, because it doesn´t factor in the greater satisfaction per dollar experienced by converts from dial-up to broadband. In this column, Greenstein seeks to correct the units of comparison.