Gila River Telecommunications, Inc. | Supplement | Project Data
The Gila River project tested the effect on adoption of discounted prices and access to discounted equipment with fixed broadband services. Gila River randomly assigned subscribers into five groups which varied by price points, speed, and access to equipment. Households were then presented with a single offer based on their randomly assigned group. The discount amounts for the broadband plans ranged from $23.24 to $38.24 which created variation in the prices paid by the end user. Two groups were also offered a free desktop computer. Consumers were not able to choose their speed but rather were offered a speed at a certain price and consumers decided whether to purchase the service. Since the end-user charge and the speed changed together across treatments, the independent effects of either cannot be estimated (though the cost per Mbps varies independently).

Wednesday, May 20, 2015