Efficient Capacity Pricing of the Internet Services
The 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.
|Date of creation:||2005|
|Contact details of provider:|| Postal: 1-5-Ga, Anam-dong, Sung buk-ku, Seoul, 136-701|
Fax: (82-2) 928-4948
Web page: http://econ.korea.ac.kr/~ri
More information through EDIRC
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.:
- Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1999.
"Information and time-of-usage decisions in the bottleneck model with stochastic capacity and demand,"
European Economic Review,
Elsevier, vol. 43(3), pages 525-548, March.
- Richard Arnott & Andre de Palma & Robin Lindsey, 1996. "Information and Time-of-Usage Decisions in the Bottleneck Model with Stochastic Capacity and Demand," Boston College Working Papers in Economics 355., Boston College Department of Economics.
- R. Arnott & A. de Palma & R. Lindsey, 1997. "Information and time-of-usage decisions in the bottleneck model with stochastic capacity and demand," THEMA Working Papers 97-13, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- McKnight, Lee W. & Boroumand, Jahangir, 2000. "Pricing Internet services: after flat rate," Telecommunications Policy, Elsevier, vol. 24(6-7), pages 565-590, August.
- 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. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:iek:wpaper:0508. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kim, Jisoo)
If references are entirely missing, you can add them using this form.