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

The always-provocative Andrew Odlyzko (University of Minnesota) has published an article in Review of Network Economics, Sep. 2004. Here's the 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.

Access to a large array of his work is available on Odlyzko's web page above and I have three of his papers that are particularly relevant to readers of this weblog linked on my other web site, technology360.org. Thanks to Chuck McConnell from NETA/PBMA for a heads up on this one. --Dennis