Re: Usage-based pricing

["Sally Morris \(Chief Executive\)" <sally.morris@alpsp.org>]

For a thoughtful evaluation of pricing models in other sectors, 
and how they might be useful for information, see 
http://www.palsgroup.org.uk/palsweb/palsweb.nsf/79b0d164e01a6cb880256ae0004a0e34/077aa204748d164f80256dbf00575e9c!OpenDocument

Personally, I think we would do well to examine other pricing 
models that work, and ask ourselves whether they would be 
applicable (in some form) to our sector.  Think about mobile 
phones, for example...

I do not believe that OA necessarily has all the answers!

Sally Morris, Chief Executive
Association of Learned and Professional Society Publishers
Email: sally.morris@alpsp.org
Website:  www.alpsp.org

----- Original Message -----
From: "Heather Morrison" <heatherm@eln.bc.ca>
To: <liblicense-l@lists.yale.edu>
Sent: Monday, October 23, 2006 10:33 PM
Subject: Usage-based pricing

> Andrew Odlyzkow wrote an article a few years ago which points 
> to the research showing that usage-based pricing discouraged 
> internet use, even at very low per-use levels.  Please see 
> "Internet Pricing and the History of Communications", at: 
> http://www.dtc.umn.edu/~odlyzko/doc/history.communications1b.pdf
>
> As further common-sense illustrations of how usage-based 
> pricing discourages use:
>
> Telephones:  the most common pricing model for a land line is a 
> flat rate for unlimited local calling, and long distance 
> charges assessed by time. In my experience, with this model, we 
> don't think at all about the cost of local calls, but we do 
> tend to think about the cost of long distance - even long 
> distance calls to the people we love very much.  This is the 
> attraction of an unlimited long distance plan - it takes this 
> tendency to discourage use out of the equation. When we're out 
> of town and a cell phone will incur roaming and long distance 
> charges, we might use the phone - but most of us will only do 
> so if this is necessary, and not for any longer than necessary.
>
> Utilities have implemented metered pricing for electricity and 
> water, precisely in order to discourage excessive use, because 
> these resources are limited.
>
> Libraries have implemented photocopier charges - not to prevent 
> people from photocopying, but to avoid high costs for 
> unnecessary photocopying - and, to save trees.  The purpose of 
> these charges, often low charges such as 10 cents per page - is 
> to discourage use.
>
> Knowledge, in electronic form on the internet, is not a limited 
> resource. An open access article can be downloaded by millions, 
> and still be there and be exactly the same for the next person 
> who wishes to download.  There is no good reason to discourage 
> use.
>
> Sharing knowledge enriches us all.  When people in a poorer, 
> rural, or developing country have the ability to learn and then 
> to do research and contribute to our collective knowledge, they 
> benefit - but, so do I.
>
> Heather Morrison
> http://poeticeconomics.blogspot.com