Re: Forbes' Peter Huber on inter-exchange pricing

Dave Long (
Mon, 13 Sep 1999 08:47:52 -0700

> The concept that Bell Atlantic owes him money seems preposterous
> today, but just you wait....

Yes, someone (Varian?) had a model where connection actually
cancelled out: sure, when two networks are connected, the addition
of the smaller network is of less benefit to the larger, but then
again, that lesser utility is multiplied by the greater subscriber
base of the larger:

Ns (subscribers on smaller network)
Nl (subscribers on larger network)
Us (utility of interconnection to smaller network)
Ul (utility of interconnection to larger network)

Ns < Nl
Us > Ul

NsUs ?? NlUl


Re: "free" stamps, envelopes
> Anyone else as horrified as I am?

It doesn't sound involuntary, so I can't be too horrified. It does
seem odd, first the e-stamp folk, and now these guys. I buy stamps
maybe once a quarter, envelopes once a year. If postage were a bit
dearer, maybe I wouldn't find it so useful to have the recycling bin
between mailbox and house. Still, maybe they're going into business
on a Barnum Bet.