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The Evolution of Price Discrimination in Transportation and its Implications for the Internet

Author

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  • Odlyzko Andrew

    (University of Minnesota University of Minnesota)

Abstract

A wide-ranging discussion of the evolution of pricing in early transportation industries, such as lighthouses, canals, and turnpikes, is presented. It shows that price discrimination was an important factor in the development of those industries, and tended to intensify with time. In order to make differential tariffs effective, service providers had the right of detailed inspection of the cargo. These historical precedents help explain the drive by large sectors of the telecommunications industry to gain greater control over what is transmitted over the Internet. The implications for the evolution of the Internet are briefly explored.

Suggested Citation

  • Odlyzko Andrew, 2004. "The Evolution of Price Discrimination in Transportation and its Implications for the Internet," Review of Network Economics, De Gruyter, vol. 3(3), pages 1-24, September.
    • Handle: RePEc:bpj:rneart:v:3:y:2004:i:3:n:4
    DOI: 10.2202/1446-9022.1055
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    Citations

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    Cited by:

    1. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    2. Jianping Wang & Jing Chen & Mei Yang & S. Q. Zheng, 2009. "Traffic regulation with single- and dual-homed ISPs under a percentile-based pricing policy," Journal of Combinatorial Optimization, Springer, vol. 17(3), pages 247-273, April.
    3. Howell, Bronwyn, 2008. "Regulated Retail Tariff Structures, Dial-Up Substitution and Broadband Diffusion: Learning from New Zealand's Experience," Working Paper Series 3987, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    4. Haan, Marco A. & Heijnen, Pim & Schoonbeek, Lambert & Toolsema, Linda A., 2012. "Sound taxation? On the use of self-declared value," European Economic Review, Elsevier, vol. 56(2), pages 205-215.
    5. Malueg, David A. & Snyder, Christopher M., 2006. "Bounding the relative profitability of price discrimination," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 995-1011, September.
    6. Linfeng Li & Miyuan Shan, 2016. "Bidirectional Incentive Model for Bicycle Redistribution of a Bicycle Sharing System during Rush Hour," Sustainability, MDPI, vol. 8(12), pages 1-15, December.
    7. Howell, Bronwyn, 2008. "Regulated Retail Tariff Structures, Dial-Up Substitution and Broadband Diffusion: Learning from New Zealand's Experience," Working Paper Series 19087, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    8. Atanu Lahiri & Rajiv M. Dewan & Marshall Freimer, 2013. "Pricing of Wireless Services: Service Pricing vs. Traffic Pricing," Information Systems Research, INFORMS, vol. 24(2), pages 418-435, June.
    9. Christiaan Hogendorn & Brett Frischmann, 2020. "Infrastructure and general purpose technologies: a technology flow framework," European Journal of Law and Economics, Springer, vol. 50(3), pages 469-488, December.
    10. Carter, Kenneth R. & Marcus, J. Scott & Wernick, Christian, 2008. "Network neutrality: Implications for Europe," WIK Discussion Papers 314, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    11. repec:vuw:vuwscr:19087 is not listed on IDEAS
    12. David Levinson & Andrew Odlyzko, 2007. "Too Expensive to Meter: The influence of transaction costs in transportation and communication," Working Papers 200802, University of Minnesota: Nexus Research Group, revised Feb 2007.

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