5.3 Spam imposes significant negative externalities on e-mail users (see the Mini-Case, Spam). If a small charge

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5.3 Spam imposes significant negative externalities on e-mail users (see the Mini-Case, “Spam”). If a small charge were applied to every e-mail message, would the extent and impact of this negative externality decline? What effect would such a charge have on the net benefits arising from non-spam messages?

How would the charge affect the proportion of spam in overall e-mail traffic?

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Managerial Economics And Strategy

ISBN: 9780135640944

2nd Global Edition

Authors: Jeffrey M. Perloff, James A. Brander

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