Vidal's libraryTitle: | Pricing Congestible Network Resources |
Author: | Jeffrey K. MacKie-Mason and Hal R. Varian |
Journal: | IEEE Journal on Selected Areas in Communications |
Volume: | 13 |
Number: | 7 |
Month: | September |
Year: | 1995 |
DOI: | 10.1109/49.414634 |
Abstract: | We describe the basic economic theory of pricing a congestible resource such as an FTP server, a router, a Web site, etc. In particular, we examine the implications of "congestion pricing" as a way to encourage efficient use of network resources. We explore the implications of flat pricing and congestion pricing for capacity expansion in centrally planned, competitive, and monopolistic environments. The most common form of Internet pricing is pricing by access, with no usage-sensitive prices. With a fixed set of users, we expect to see greater capacity when usage is not priced, but also greater congestion. However, with greater congestion, congestion-sensitive users might not use the resource. |
Cited by 325 - Google Scholar
@Article{mackie-mason95a,
author = {Jeffrey K. MacKie-Mason and Hal R. Varian},
title = {Pricing Congestible Network Resources},
journal = {{IEEE} Journal on Selected Areas in Communications},
year = 1995,
volume = 13,
number = 7,
month = {September},
abstract = { We describe the basic economic theory of pricing a
congestible resource such as an FTP server, a
router, a Web site, etc. In particular, we examine
the implications of "congestion pricing" as a way
to encourage efficient use of network resources. We
explore the implications of flat pricing and
congestion pricing for capacity expansion in
centrally planned, competitive, and monopolistic
environments. The most common form of Internet
pricing is pricing by access, with no
usage-sensitive prices. With a fixed set of users,
we expect to see greater capacity when usage is not
priced, but also greater congestion. However, with
greater congestion, congestion-sensitive users might
not use the resource.},
keywords = {economics networks auctions},
doi = {10.1109/49.414634},
url = {http://jmvidal.cse.sc.edu/library/mackie-mason95a.pdf},
googleid = {of6i7cs2SuMJ:scholar.google.com/},
cluster = {16377963244379373217}
}
Last modified: Wed Mar 9 10:14:04 EST 2011