Tariff-Specific Preferences and Their Influence on Price Sensitivity

For many services, consumers can choose among a range of optional tariffs that differ in their access and usage prices. Recent studies indicate that tariff-specific preferences may lead consumers to choose a tariff that does not minimize their expected billing rate. This study analyzes how tariff-specific preferences influence the responsiveness of consumers’ usage and tariff choice to changes in price. We show that consumer heterogeneity in tariff-specific preferences leads to heterogeneity in their sensitivity to price changes. Specifically, consumers with tariff-specific preferences are less sensitive to price increases of their preferred tariff than other consumers. Our results provide an additional reason why firms should offer multiple tariffs rather than a uniform nonlinear pricing plan to extract maximum consumer surplus.

Just a Tea Stall Girl: Lessons from India

This article charts the learning of a female academic who travelled and volunteered in southern India during a sabbatical leave from her university. Opportunities to discover gender, race and class connections ranged from tea-stall conversations to academic symposia; from outings with impoverished Indian families to excursions with social justice organizations. The author explores topics that include dowry, politics, globalization, communalism, and poverty. To illustrate her learning, she draws on the work of such renowned Indian scholars as Ali Ashgar Engineer and Vandana Shiva.