We analyze three potential solutions to the spamn problem - sender pays pricing, receiver pays pricing and filtering - used alone or concurrently. We find that filters alone may exacerbate the spam problem if the spammer tries to evade them by sending multiple variants of the message to each consumer. Sender pays and receiver pays prices can be effective on their own or with filtering in reducing or eliminating spam. When filtering is used in conjunction with either price the magnitude of the spam-eliminating price is unambiguously reduced for every level of filter effectiveness.
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Paper provided by Department of Economics, University of Calgary in its series Working Papers with number
2008-09.
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