Efficient Capacity Pricing of the Internet Services
AbstractThe paper examines the possibilities to improve efficiency in Internet pricing by introducing pre-purchase contract. One can regard pre-purchase market as a device for providing guaranteed services and as an alternative to smart market that can implement expected capacity pricing in an efficient manner. We find that the pre-purchase market tends to discriminate against the consumers who are less certain about their demands. We provide a condition under which the discriminatory effect is overwhelmed by the market force, which discourages the consumers with lower value by high premium. We also suggest a solution to the discriminatory effect.
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Bibliographic InfoPaper provided by Institute of Economic Research, Korea University in its series Discussion Paper Series with number 0508.
Date of creation: 2005
Date of revision:
Network congestion; Pre-purchase; Edge pricing; Smart market; Internet pricing;
Other versions of this item:
- 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.
- D60 - Microeconomics - - Welfare Economics - - - General
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-26 (All new papers)
- NEP-COM-2006-02-26 (Industrial Competition)
- NEP-MKT-2006-02-26 (Marketing)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Boston College Working Papers in Economics
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- Apostolopoulos, Theodore & Courcoubetis, Costas & Cohen, Sandra & Psiakki, Xanthi, 2000. "Multiple incentive internet pricing for national academic research networks: a case study," Telecommunications Policy, Elsevier, vol. 24(6-7), pages 591-611, August.
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