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

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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
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    Citations

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    Cited by:

    1. Simon P. Anderson & RĂ©gis Renault, 2011. "Price Discrimination," Chapters,in: A Handbook of Transport Economics, chapter 22 Edward Elgar Publishing.
    2. 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.
    3. 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.
    4. 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.
    5. 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.

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