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Pricing in computer networks: Reshaping the research agenda

Author

Listed:
  • Shenker, Scott
  • Clark, David
  • Estrin, Deborah
  • Herzog, Shai

Abstract

As the internet makes the transition from research testbed to commercial enterprise, the topic of pricing in computer networks has suddenly attracted great attention. Much of the discussion in the network design community and the popular press centers on the usage-based versus flat pricing debate. The more academic literature has largely focused on devising optimal pricing policies; achieving optimal welfare requires charging marginal congestion costs for usage. We contend that the research agenda on pricing in computer networks should shift away from the optimality paradigm and focus more on structural and architectural issues.

Suggested Citation

  • Shenker, Scott & Clark, David & Estrin, Deborah & Herzog, Shai, 1996. "Pricing in computer networks: Reshaping the research agenda," Telecommunications Policy, Elsevier, vol. 20(3), pages 183-201, April.
    • Handle: RePEc:eee:telpol:v:20:y:1996:i:3:p:183-201
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    Citations

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    Cited by:

    1. William H. Sandholm, 2002. "Evolutionary Implementation and Congestion Pricing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(3), pages 667-689.
    2. Gergely Biczók & Sándor Kardos & Tuan Trinh, 2010. "Pricing Internet access in the presence of user loyalty," Netnomics, Springer, vol. 11(2), pages 119-147, July.
    3. Han, Lei, 2009. "Market acceptance of cloud computing: An analysis of market structure, price models and service requirements," Bayreuth Reports on Information Systems Management 42, University of Bayreuth, Chair of Information Systems Management.
    4. William H. Sandholm, 2005. "Negative Externalities and Evolutionary Implementation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 885-915.
    5. Wulf, Jochen & Limbach, Felix & Zarnekow, Rüdiger, 2010. "Analysis of QoS Platform Cooperation Strategies," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 39, International Telecommunications Society (ITS).
    6. Yoon, Chang-Ho & Song, Young-Woong & Jun, Byoung Heon, 2005. "Efficient capacity pricing of the internet services," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 46(2), pages 149-158, December.
    7. Emanuele Giovanetti, 2005. "Diagonal mergers and foreclosure in the internet," Working Papers in Public Economics 80, University of Rome La Sapienza, Department of Economics and Law.
    8. Xiang-Yang Li & Zheng Sun & Weizhao Wang & Wei Lou, 2010. "Cost sharing and strategyproof mechanisms for set cover games," Journal of Combinatorial Optimization, Springer, vol. 20(3), pages 259-284, October.
    9. Ramesh Johari & John N. Tsitsiklis, 2004. "Efficiency Loss in a Network Resource Allocation Game," Mathematics of Operations Research, INFORMS, vol. 29(3), pages 407-435, August.
    10. Altan, Başak & Sunay, M. Oğuz, 2020. "Optimal peer-to-peer network for streaming multimedia broadcast," Mathematical Social Sciences, Elsevier, vol. 108(C), pages 166-174.
    11. Jacques Crémer & Patrick Rey & Jean Tirole, 2000. "Connectivity in the Commercial Internet," Journal of Industrial Economics, Wiley Blackwell, vol. 48(4), pages 433-472, December.
    12. Giovannetti, E., 2003. "‘How Different is Wireless Access? Implications for Internet Mergers," Cambridge Working Papers in Economics 0307, Faculty of Economics, University of Cambridge.
    13. Nisan, Noam & Ronen, Amir, 2001. "Algorithmic Mechanism Design," Games and Economic Behavior, Elsevier, vol. 35(1-2), pages 166-196, April.
    14. Gary Madden & Scott Savage, 2000. "Some Economic and Social Aspects of Residential Internet Use in Australia," Journal of Media Economics, Taylor & Francis Journals, vol. 13(3), pages 171-185.
    15. Nisan, Noam, 2015. "Algorithmic Mechanism Design," Handbook of Game Theory with Economic Applications,, Elsevier.
    16. Ramesh Johari & John N. Tsitsiklis, 2009. "Efficiency of Scalar-Parameterized Mechanisms," Operations Research, INFORMS, vol. 57(4), pages 823-839, August.
    17. Miguel A. Lejeune, 2002. "Awareness of Distributed Denial of Service Attacks' Dangers: Role of Internet Pricing Mechanisms," Netnomics, Springer, vol. 4(2), pages 145-162, November.
    18. Neil Keon & G. “Anand” Anandalingam, 2005. "A New Pricing Model for Competitive Telecommunications Services Using Congestion Discounts," INFORMS Journal on Computing, INFORMS, vol. 17(2), pages 248-262, May.
    19. Burkhard Stiller & Peter Reichl & Simon Leinen, 2001. "Pricing and Cost Recovery for Internet Services: Practical Review, Classification, and Application of Relevant Models," Netnomics, Springer, vol. 3(2), pages 149-171, September.

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