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Pricing and Cost Recovery for Internet Services: Practical Review, Classification, and Application of Relevant Models

Author

Listed:
  • Burkhard Stiller

    (ETH Zürich)

  • Peter Reichl

    (ETH Zürich)

  • Simon Leinen

    (SWITCH)

Abstract

Suitable pricing models for Internet services represent one of the main prerequisites for a successfully running implementation of a charging and accounting system. This paper introduces general aspects influencing the choice of a pricing model in practical situations and presents a survey as well as a classification of relevant and advanced approaches to be found in the scientific literature. First performance results on charging extensions within the Internet are presented, which are completed by a set of market price simulations for dynamic pricing models within the same implementation environment. Based on cost model investigations some detailed insights into price and cost issues from an Internet Service Provider's (ISP) point of view are given. Moreover, current challenges as well as problems are discussed in a practical context as investigated in the Swiss National Science Foundation project Charging and Accounting Technology for the Internet (CATI).

Suggested Citation

  • 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.
    • Handle: RePEc:kap:netnom:v:3:y:2001:i:2:d:10.1023_a:1011407413900
    DOI: 10.1023/A:1011407413900
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    References listed on IDEAS

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    1. George Fankhauser & Burkhard Stiller & Bernhard Plattner, 1999. "Arrow: A flexible architecture for an accounting and charging infrastructure in the Next Generation Internet," Netnomics, Springer, vol. 1(2), pages 201-223, October.
    2. 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.
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    Cited by:

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    2. Patrick Maillé & Bruno Tuffin, 2012. "Competition among providers in loss networks," Annals of Operations Research, Springer, vol. 199(1), pages 3-22, October.

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