Last year, The New York Times criticized usage-based broadband pricing,
noting that “Moving an extra gigabyte of data at off-peak times costs
virtually nothing.” More recently, a report by the advocacy group Public
Knowledge suggested that broadband data caps, a form of usage-based
pricing, are an inefficient way to manage congestion. These claims are
correct: while monthly caps may help control congestion if they impose
binding constraints on high-volume users, pricing models truly aimed at
congestion would target times and areas of congestion directly. That’s
why the DC Metro system…
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