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An Efficient Mechanism for Differentiated Quality of Internet Service

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  • Seungjin Han

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.

Suggested Citation

  • Seungjin Han, 2003. "An Efficient Mechanism for Differentiated Quality of Internet Service," Department of Economics Working Papers 2003-05, McMaster University.
    • Handle: RePEc:mcm:deptwp:2003-05
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    File URL: http://socserv.mcmaster.ca/econ/rsrch/papers/archive/2003-05.pdf
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    References listed on IDEAS

    as
    1. Mackie-Mason, J.K. & Varian, H.R., 1993. "Pricing the Internet," Memorandum 1993_020, Oslo University, Department of Economics.
    2. 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.
    3. Gupta, Alok & Stahl, Dale O. & Whinston, Andrew B., 1997. "A stochastic equilibrium model of internet pricing," Journal of Economic Dynamics and Control, Elsevier, vol. 21(4-5), pages 697-722, May.
    4. MacKie-Mason, J.K. & Varian, H.L., 1993. "Some Economists of the Internet," Papers 93-16, Michigan - Center for Research on Economic & Social Theory.
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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