Abstract
We consider two different qualities of broadband access, one that simply means greater access speed to Internet applications and content, and a premium version that also gives access to interactive TV services. Based on a market survey we find that potential consumers of this premium broadband access do not consider basic broadband Internet access as a substitute. The price of basic broadband does not constrain the price that may be charged for the premium broadband that allows for interactive TV services.
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Andersson, K., Fjell, K. & Foros, Ø. Are Interactive TV-Pioneers and Surfers Different Breeds? Broadband Demand and Asymmetric Cross-Price Effects. Rev Ind Organ 25, 295–316 (2004). https://doi.org/10.1007/s11151-004-1971-4
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DOI: https://doi.org/10.1007/s11151-004-1971-4