Pricing network resources for adaptive applications
IEEE/ACM Transactions on Networking (TON)
Economics of network pricing with multiple ISPs
IEEE/ACM Transactions on Networking (TON)
Revenue maximization for communication networks with usage-based pricing
GLOBECOM'09 Proceedings of the 28th IEEE conference on Global telecommunications
Pricing under constraints in access networks: revenue maximization and congestion management
INFOCOM'10 Proceedings of the 29th conference on Information communications
IEEE Journal on Selected Areas in Communications
Pricing congestible network resources
IEEE Journal on Selected Areas in Communications
Providing Internet access: what we learn from INDEX
IEEE Network: The Magazine of Global Internetworking
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In this paper, we study the pricing of Internet services under monopoly and duopoly environments using an analytic model in which a service provider and users try to maximize their respective payoffs. We compare a few popular pricing schemes, including flat, volume-based, two-part, and nonlinear tariffs, with respect to revenue, social welfare, and user surplus. We perform a study of the sensitivity of these schemes to the estimation errors. In the duopoly situation, we formulate a simple normal form game between two service providers and study their equilibrium behaviors. Our main findings include: (1) the flat pricing generates higher revenue than the pure volume pricing when the elasticity of demand is low; (2) the volume-based pricing is better for society and users than the flat pricing regardless of the elasticity; (3) the market is segmented into two when one provider provides flat pricing and another provides volume based pricing.