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Optimal Pricing for Voice Mail Services: A Comment

David W. Boyd

The American Economist, 2012, vol. 57, issue 2, 253-256

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.

Keywords: Voice mail; communication; multiplier; infinite series; profit (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1177/056943451205700209

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