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An Efficient Mechanism for Differentiated Quality of Internet Service

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  • Seungjin Han
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    Abstract

    The Internet industry has realized the importance of provisioning different quality of service to different applications. This paper proposes the integrated differentiated services that achieves the efficient throughput allocation without significant queue management or real-time pricing costs. Competing differentiated services integrates networks into a single network in an economy and allows endusers to submit packets to many networks. In equilibrium, each network posts any price for a submitted packet over time by virtue of the revenue equivalence property.

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    File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2003-05.pdf
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    Bibliographic Info

    Paper provided by McMaster University in its series Department of Economics Working Papers with number 2003-05.

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    Length: 22 pages
    Date of creation: May 2003
    Date of revision:
    Handle: RePEc:mcm:deptwp:2003-05

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    1. Cremer, Jacques & Hariton, Cyril, 1999. "The Pricing of Critical Applications in the Internet," Journal of the Japanese and International Economies, Elsevier, vol. 13(4), pages 281-310, December.
    2. Alok Gupta & Dale O. Stahl, 1996. "A Stochastic Equilibrium Model of Internet Pricing," CARE Working Papers, The University of Texas at Austin, Center for Applied Research in Economics 9604, The University of Texas at Austin, Center for Applied Research in Economics.
    3. MacKie-Mason, J.K. & Varian, H.L., 1993. "Some Economists of the Internet," Papers, Michigan - Center for Research on Economic & Social Theory 93-16, Michigan - Center for Research on Economic & Social Theory.
    4. Jeffrey K. MacKie-Mason & Hal R. Varian, 1994. "Pricing the Internet," Computational Economics, EconWPA 9401002, EconWPA.
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