One common concern about pricing the Internet is that “poor” users will be deprived of access. This is not a problem with pricing itself, but with the distribution of wealth; we could ensure that certain users have sufficient resources to purchase a base level of services by redistributing initial resources through vouchers or lump sum grants. Indeed, total costs will be lower in an efficient network, so it will be less costly to meet distributional objectives than in an unpriced network.
Predictor: MacKie-Mason, Jeffrey K.
Prediction, in context:The 1995 book “Public Access to the Internet,” edited by Brian Kahin and James Keller carries the chapter, “Pricing the Internet” by Jeffrey K. MacKie-Mason and Hal R. Varian. MacKie is an associate professor of economics and Varian is a professor of economics at the University of Michigan. They write: ”One common concern about pricing the Internet is that ‘poor’ users will be deprived of access. This is not a problem with pricing itself, but with the distribution of wealth; we could ensure that certain users have sufficient resources to purchase a base level of services by redistributing initial resources through vouchers or lump sum grants. Indeed, total costs will be lower in an efficient network, so it will be less costly to meet distributional objectives than in an unpriced network.”
Date of prediction: January 1, 1995
Topic of prediction: Information Infrastructure
Subtopic: Cost/Pricing
Name of publication: Public Access to the Internet (book)
Title, headline, chapter name: Pricing the Internet
Quote Type: Direct quote
Page number or URL of document at time of study:
Page 285
This data was logged into the Elon/Pew Predictions Database by: Guarino, Jennifer Anne