Jose Ricardo Nogueira () and
Jose Carlos Cavalcanti ()
Additional contact information Jose Ricardo Nogueira: Department of Economics, Universidade Federal de Pernambuco, http://www.decon.ufpe.br
Abstract:
This paper addresses the question of how the price system can be used to deal with the issue of distributional equity in the Internet. Feldstein's distributional charateristic method and the safety net approach are considered and compared with first best solutions. The conclusion drawn is that it may be more adequate to the Internet case to resort to the safety net model than Feldstein's.