We describe the technology and costs of the Internet, then discuss how to design efficient pricing in order to allocate scarce Internet resources. We offer a "smart market" as a device to efficiently price congestion

This paper was prepared for the Tenth Michigan Public Utility Conference at Western Michigan University March 25-27, 1993. We describe the history, technology and cost structure of the Internet. We also describe a possible smart-market mechanism for pricing congestion on the Internet