Practice area: | Competition & Antitrust | Post | Regulatory economics |
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Client: | LE Working Paper |
Published: | June, 2006 |
Keywords: | qualitative analysis |
This paper develops an approach of how to incorporate quality of service improvements into price caps using economic concepts related to productivity growth measurement and hedonic pricing. The paper advances practical work done by Postcomm (use of the C factor) and is related to empirical work done previously to estimate both consumers’ willingness to pay for improved quality of service and the production cost of improving quality of service.