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Optimal Pricing and Cost Recoverability in Distributed Database Environment with Value and Cost Externalities

Author

Listed:
  • Yamakawa, S.

Abstract

We study an optimal pricing scheme in an internal distributed database environment with many users. The pricing scheme is an extension of the congestion externality pricing proposed by Mendelson [16]. Our model captures not only the congestion externality but also the network externality among users and valuation gap between users and the firm.

Suggested Citation

  • Yamakawa, S., 1996. "Optimal Pricing and Cost Recoverability in Distributed Database Environment with Value and Cost Externalities," Papers 96-05, Rochester, Business - Computer and Information Systems.
  • Handle: RePEc:fth:robuco:96-05
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    Cited by:

    1. Sumita, Ushio & Masuda, Yasushi & Yamakawa, Shigetaka, 2001. "Optimal internal pricing and capacity planning for service facility with finite buffer," European Journal of Operational Research, Elsevier, vol. 128(1), pages 192-205, January.

    More about this item

    Keywords

    PRICING ; EXTERNALITIES ; PRODUCTION;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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