Pricing computer services: queueing effects
Communications of the ACM
Optimal incentive-compatible priority pricing for the M/M/1 queue
Operations Research
Optimal Pricing of Priority Services
Operations Research
Comparison of Software Quality Under Perpetual Licensing and Software as a Service
Journal of Management Information Systems
Price Mechanism for Knowledge Transfer: An Integrative Theory
Journal of Management Information Systems
Buyer Uncertainty and Two-Part Pricing: Theory and Applications
Management Science
Use of Pricing Schemes for Differentiating Information Goods
Information Systems Research
Pricing Services Subject to Congestion: Charge Per-Use Fees or Sell Subscriptions?
Manufacturing & Service Operations Management
The Disruptive Effect of Open Platforms on Markets for Wireless Services
Journal of Management Information Systems
Pricing Digital Goods: Discontinuous Costs and Shared Infrastructure
Information Systems Research
How to Price Discriminate When Tariff Size Matters
Marketing Science
The Disruptive Effect of Open Platforms on Markets for Wireless Services
Journal of Management Information Systems
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A tariff is the total charge payable by a customer for services provided. We study the design of tariffs for a telecommunications service provider. We develop an economic model that captures the negative externalities of the network and the diversity of customers. The tariff is designed so that it reflects the expected response of different customers and the system congestion it would induce. We study a simple tariff structure in wide use by mobile phone carriers---a menu of “fixed-up-to (FUT)” plans like “fixed access fee $35 up to 300 minutes, and $0.40 per minute beyond the limit.” We derive the optimal menu of FUT plans and show that such a simple FUT menu structure delivers as good performance to the monopolistic carrier as any nonlinear pricing schedule.