Costs, Tariffs, and Telecoms

Paper delivered at the Philippines Telecoms Development Summit, Manila, 12-13th Oct 1993.

Costs, Tariffs, and Telecoms

Pricing issues in economic theory are almost always presented in terms of theoretical concepts such a marginal costs and marginal revenues. Never mind that most managers of companies, large and small, have hardly ever seen a marginal cost and probably wouldn’t recognize it if it came and sat on their desk one morning smoking a cigar. The fact is, many costs are common or joint costs, and dividing costs between different services becomes not just very difficult to measure, but conceptually almost arbitrary.

Download the paper here

Photo by Mika Baumeister

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