Zero Marginal Cost Research Articles

The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism

The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism

Physics of Climate Change: Harmonic and exponential processes from in situ ocean time series observations show rapid asymmetric warming.

Physics of Climate Change: Harmonic and exponential processes from in situ ocean time series observations show rapid asymmetric warming.

DO COMMON CARRIAGE, SPECIAL INFRASTRUCTURE, AND GENERAL PURPOSE TECHNOLOGY RATIONALES JUSTIFY REGULATING COMMUNICATIONS NETWORKS?

We address whether regulation of communications networks remains warranted. We use the concepts of public utility, common carrier, special infrastructure, and general purpose technologies to analyze this question, as such concepts typically are invoked as foundations for continued regulation of communications networks. We examine the historical development of the public utility and common carrier concepts and find that the essential features of these constructs largely do not fit communications networks today and for the foreseeable future. More recent frameworks for economic regulation also do not fit. Communications networks are not special infrastructure because they do not exhibit zero marginal costs over an appreciable range of demand and do not exhibit a differentiating amount of social demand. Communications networks appear to satisfy the conditions for general purpose technologies, but the features of these technologies that would compel economic regulation, primarily the presence of significant externalities, are lacking.

Curtailment of renewable generation: Economic optimality and incentives

The loss from curtailing generation based on renewable energy sources is generally seen as an unacceptable solution by the public. The main argument is that it is a loss of green energy and an economic loss to curtail generation with near zero marginal costs. However, this view could lead to overinvestment in grid infrastructure and underinvestment in renewable energy sources. This article argues that some curtailment of fluctuating (variable) generation is optimal. We address the possible contributions to total curtailment from involuntary and voluntary curtailment. The costs of curtailment in terms of lost generation are discussed based on market price and support levels including the rationale for compensating generators for losses. The extent of actual curtailment is illustrated by examples from different global markets. In general, both the value of the curtailed energy and the amount of curtailed energy relative to total fluctuating generation is low but rising. Single generators may be affected considerably if insufficient compensation measures are in place. In the future, optimal curtailment will increase along with an increased share of fluctuating renewable generation. Extending renewable generation comparatively cheaply can be achieved by the installation of additional capacity at offshore locations until optimal curtailment levels are reached.

A Shacklean Approach to the Demand for Movies

Film has a number of characteristics that define it as a commodity-type and hence distinguish it from other commodity-types.4 Not only is film non-diminishable in consumption (because it is consumed in the mind of the viewer), but also the images that make up a film are infinitely reproducible and, in the era of digital technology, reproducible at near zero marginal cost. Furthermore, each film is to some extent novel in that its constitutive images are each unique and so is the ordering of the images into the sequenced continuity that makes the film meaningful to (but not, ipso facto, liked by) the consumer.5 Hence, prior to the consumption of a film, consumers cannot have a complete idea of the visual and aural cinematic utility that they are going to experience, nor of their reaction to that experience. Films are thus experience goods: an experiential divide exists between the two mental states of awareness, namely expectation and realization, both of which entail a learning process based on previous experience (Nelson, 1974, p. 745). A final element in the ontology of film as a commodity is the rapidly diminishing utility of film in consumption. That is, once consumed in theatrical release, films are rarely revisited theatrically by consumers, who commonly prefer the anticipation of new cinematic pleasure to the repeat viewing of old pleasures.

Charging for Admission to Museums and Galleries: A Framework for Analysing the Impact on Access

The Labour Government recently stated that access is a cornerstone of all its cultural policies, including those for museums and galleries. This paper therefore outlines a robust paradigm by means of which the impact of admission charges on access can be analysed. In applying that paradigm to museums, it demonstrates a number of analytical and theoretical “red herrings” which serve only to confuse a study of charges, including the “zero marginal cost” argument for free admission. Unless it uses this framework, the Government cannot be sure that it has secured access for the many instead of the few.