An Examination of the Economics of Whitacre Tiering

AN EXAMINATION OF THE ECONOMICS OF 'WHITACRE TIERING'
[SOURCE: Tales of the Sausage Factory, AUTHOR: Harold Feld]
[Commentary] Why "Whitacre tiering" produces really, really awful results from an economic perspective. It gives actors all the wrong incentives, adds new layers of uncertainty and inefficiency to the market generally, and discourages investment in bandwidth capacity at every stage of the network (thus aggravating the broadband incentives problem you may have read about recently, rather than solving it, as some defenders of Whitacre tiering maintain).
http://www.wetmachine.com/item/441