2- and 3-part Cost Structures in Consumer Behavior: The 'Free' Allowance

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Consumption Behavior > Forum > 2- and 3-part Cost Structures in Consumer Behavior: The 'Free' Allowance

2- and 3-part Cost Structures in Consumer Behavior: The 'Free' Allowance
Anneke Zwart, Student (University), Netherlands, Moderator
In the past decades, an increasing amount of companies from various industries have tried to change their pricing structures. A common seen trend, in particular among telecom providers, banks and energy providers, is the replacement of a 2-part costs structure by a 3-part costs structure:
Two Part Cost Structure: The price/cost of a certain service exists of a fixed (usually monthly) access price and a usage price for every unit consumed. These “unit’’ range messages or minutes in th... Read more? Sign up for free
 

   

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