Article ID: | iaor20011829 |
Country: | United Kingdom |
Volume: | 358 |
Issue: | 1773 |
Start Page Number: | 2309 |
End Page Number: | 2318 |
Publication Date: | Aug 2000 |
Journal: | Philosophical Transactions of the Royal Society of London |
Authors: | Mason R.A. |
Keywords: | internet |
This paper aims to show that economics can make an important contribution to the question of how to price the Internet. It argues that any pricing scheme must be robust to strategic behaviour, in the sense that the scheme must be supportable as an equilibrium between firms or individuals. The paper analyses the implications of this restriction for interconnection agreements between networks, and for end-user pricing.