Essays on Public Utility Policy, Firm Strategy, and Consumer Perceptions

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Material Information

Title:
Essays on Public Utility Policy, Firm Strategy, and Consumer Perceptions
Physical Description:
1 online resource (128 p.)
Language:
english
Creator:
Li, Fan
Publisher:
University of Florida
Place of Publication:
Gainesville, Fla.
Publication Date:

Thesis/Dissertation Information

Degree:
Doctorate ( Ph.D.)
Degree Grantor:
University of Florida
Degree Disciplines:
Economics
Committee Chair:
BERG,SANFORD V
Committee Co-Chair:
SLUTSKY,STEVEN M
Committee Members:
HAMILTON,JONATHAN H
AI,CHUNRONG
FIK,TIMOTHY J

Subjects

Subjects / Keywords:
demo -- electricity -- quality
Economics -- Dissertations, Academic -- UF
Genre:
Economics thesis, Ph.D.
bibliography   ( marcgt )
theses   ( marcgt )
government publication (state, provincial, terriorial, dependent)   ( marcgt )
born-digital   ( sobekcm )
Electronic Thesis or Dissertation

Notes

Abstract:
This dissertation conducts two studies in the areas of industrial organization. In Chapter 1 and 2, I analyze how utility choosing service quality under a public utility cross-subsidy system. In Chapter 3, I discuss firm decisions concerning the size and the content of a free demo for digital experience goods. In Chapter I, I present a theoretical model of how utility responding to financial deficit under cross-subsidies. Developing countries often use cross-subsidies to promote electricity consumption by poor households. That raises the issue of whether charging lower prices to poor households, while boosting their consumption, also induces utilities to lower the quality of service they receive. In this model, the government sets subsidies and surcharges for consumers from different income classes. The model shows that when government transfers fail to cover the deficit, the utility reduces quality for subsidized consumers but increases quality for surcharged consumers. In Chapter 2, I use the Colombian electricity sector to test the prediction from Chapter 1. Evidence from the Living Standard Measurement Survey indicates that the utility provides lower perceived service quality to subsidized consumers than to residents paying surcharges. The difference in perceived quality is reduced by an increase in the amount of government transfers. In Chapter 3, I develop a theoretical model to examine the demo strategy. Many software firms offer a free demo with limited content to help buyers assess the likely value of the goods. A demo enables the seller to segment the market and charge higher prices to high-value buyers, but can cause a decline in demand. Moreover, the seller risks losing part of the demand for her products because buyers may value a demo enough to drive demand for the product to zero. Thus, the benefit of a demo is offset by this cannibalization loss. In addition, the prior beliefs of buyers affect the ability to convey information for a demo. The model shows that buyers are supplied with either partial knowledge or no information.
General Note:
In the series University of Florida Digital Collections.
General Note:
Includes vita.
Bibliography:
Includes bibliographical references.
Source of Description:
Description based on online resource; title from PDF title page.
Source of Description:
This bibliographic record is available under the Creative Commons CC0 public domain dedication. The University of Florida Libraries, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.
Statement of Responsibility:
by Fan Li.
Thesis:
Thesis (Ph.D.)--University of Florida, 2014.
Local:
Adviser: BERG,SANFORD V.
Local:
Co-adviser: SLUTSKY,STEVEN M.
Electronic Access:
RESTRICTED TO UF STUDENTS, STAFF, FACULTY, AND ON-CAMPUS USE UNTIL 2014-11-30

Record Information

Source Institution:
UFRGP
Rights Management:
Applicable rights reserved.
Classification:
lcc - LD1780 2014
System ID:
UFE0046601:00001