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Optimal Pricing for Voice Mail Services: A Comment

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  • David W. Boyd

Abstract

The presence of voice mail services not only increases the likelihood of a successful communication between two callers, it also creates additional calls, which can increase telecommunications company revenue. If voice mail is available to both parties, a voice mail message spawns return calls, some of which may also be diverted to voice mail. These back-and-forth calls are a multiple of the number of initial calls placed by the initiating party. Because voice mail increases the number of calls made, it may be possible that the telecommunications company increases its profits by making voice mail available to its customers.

Suggested Citation

  • David W. Boyd, 2012. "Optimal Pricing for Voice Mail Services: A Comment," The American Economist, Sage Publications, vol. 57(2), pages 253-256, November.
    • Handle: RePEc:sae:amerec:v:57:y:2012:i:2:p:253-256
    DOI: 10.1177/056943451205700209
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    References listed on IDEAS

    as
    1. Loder Theodore & Van Alstyne Marshall & Wash Rick, 2006. "An Economic Response to Unsolicited Communication," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-38, March.
    2. Benjamin E. Hermalin & Michael L. Katz, 2004. "Sender or Receiver: Who Should Pay to Exchange an Electronic Message?," RAND Journal of Economics, The RAND Corporation, vol. 35(3), pages 423-447, Autumn.
    Full references (including those not matched with items on IDEAS)

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