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Abstract:
Abstract
The Evolution of Price Discrimination in Transportation and its Implications
for the Internet
The Review of Network Economics
Vol. 3, Issue 3 - September 2004, pp 323-346
Author
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Andrew Odlyzko
University of Minnesota University of Minnesota
E-mail: [email protected] |
Abstract
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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.
Keywords: Price Discrimination, Transportation, Internet, Telecommunications
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