This paper compares costs and revenues of two modes of provision of pay-television by cable and satellite providers. The two modes are bundling and à la carte, both of which are subscription-based services. Results of this research show that on average à la carte is more expensive to deliver than bundling, while revenues of both are comparable. The paper also deals with the economics of urban agglomeration and regional networks. It shows that im-provement in technology makes it possible to simulate agglomeration in metropolitan areas with networks, which makes it possible for small urban regions and rural regions to share in network outputs.


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