It is worth examining the idea that changes in incentives cause people to change their behavior. In
Question:
It is worth examining the idea that changes in incentives cause people to change their behavior. In recent years, the cost of some types of high-speed Internet service has declined to as little as $20 per month for unlimited access to the Internet. This means that people who use their high-speed connection primarily for surfing the Web for information and e-mail pay exactly the same amount per month as do gamers and people who download music and videos. The first group uses very little bandwidth, and the second group uses very high amounts of bandwidth. Recently, some Internet service providers (ISPs) have put forth the idea that the monthly fee for high-speed Internet service be for a specific amount of bandwidth use. After that bandwidth has been used by a customer, a fee would be charged on additional bandwidth use. What do you expect this form of pricing by ISPs for bandwidth would do to the volume of video and music downloads?
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