I am working on a project that will capture the impact of video rate increases. In a selection of years the cost of video increases for the provider and in turn the cost to consumers increases. What we are looking to answer is what is the effect on the economy due to these rate increases. I have annual subscriber counts (used to eliminate new customers who enter at the new price) and the cost of service. I have built a base analysis that is a look at median income level for our area, showing a decrease in HH income across all customer that experienced the price increase and a impact event that shows increased/decreased revenues from the price change - this is my attempt to capture the net effect.
Is this the correct approach to rate change analysis?
Are there any studies that examine a similar topic?
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