Re: An Attempt at Economically Rational Pricing: Time Warner Trial

[Michael Holstein <michael.holstein () csuohio edu>]

> Some restuarants are all-you-can-eat and others are pay by portion.

None of the nice ones. Then again, the nicer restaurants have a portion 
size that reflects the higher cost.

The problem is the inability of the physical media in TWC's case (coax) 
to support multiple simultaneous users. They've held off infrastructure 
upgrades to the point where they really can't offer "unlimited" 
bandwidth. TWC also wants to collect on their "unlimited" package, but 
only to the 95% of the users that don't really use it, and it appears 
they don't see working to accommodate the other 5% as cost-effective.

My guess is the market will work this out. As soon as it's implemented, 
you'll see AT&T commercials in that town slamming cable and saying how 
DSL is "really unlimited".

Cheers,

Michael Holstein
Cleveland State University