Wednesday, April 6, 2011

AT&T and Price Discrimination

AT&T is changing the way the charge for data usage from a $30/month unlimited plan to a tiered rate in which the price they charge customers will be based on the amount of data used ($15/month for less than 200MB and $25/month for less than 2GB, with those using more having to pay a higher price). This is an excellent example of the type of price discrimination that I examine in Prin. of Microeconomics.

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