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Pricing the Internet


  • Jeffrey K. MacKie-Mason

    (University of Michigan)

  • Hal R. Varian

    (University of Michigan)


This paper was prepared for the conference ``Public Access to the Internet,'' JFK School of Government, May 26--27 , 1993. We describe some of the technology and costs relevant to pricing access to and usage of the Internet, and discuss the components of an efficient pricing structure. We suggest a possible smart-market mechanism for pricing traffic on the Internet.

Suggested Citation

  • Jeffrey K. MacKie-Mason & Hal R. Varian, 1994. "Pricing the Internet," Computational Economics 9401002, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpco:9401002
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    References listed on IDEAS

    1. Arnott Richard & Kraus Marvin, 1995. "Financing Capacity in the Bottleneck Model," Journal of Urban Economics, Elsevier, vol. 38(3), pages 272-290, November.
    2. Richard Arnott & Marvin Kraus, 1995. "Self-Financing of Congestible Facilities in a Growing Economy," Boston College Working Papers in Economics 304., Boston College Department of Economics.
    3. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    4. Wilson, Robert B, 1989. "Efficient and Competitive Rationing," Econometrica, Econometric Society, vol. 57(1), pages 1-40, January.
    5. MacKie-Mason, J.K. & Varian, H.L., 1993. "Some Economists of the Internet," Papers 93-16, Michigan - Center for Research on Economic & Social Theory.
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    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs


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