Materials from Class > Tue 10/1

Data for the telephone cross-subsidy example

Here is initial data (case 1, BAU) for the two markets in the telephone cross-subsidy analysis to be done in class. The value of `WTA_L` is initially unknown but will be found in the course of the analysis.

Market data:

  Lines (L) Minutes (M)
Price $30 $0.25
Quantity 100k 10M
Elasticity -0.2 -1
WTA TBD
$0.10

Policy budget:

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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 10/04/2023