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Demand for different qualities of service for Internet access: a review of INDEX findings

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Authors
Chu, Karyen; Altmann, Jorn
Issue Date
2000-08-15
Publisher
Royal Society
Citation
Phil. Trans. R. Soc. Lond. A 358, 2319-2334
Keywords
Internet accesspricingInternet access demandQuality of Serviceexperimental studies
Abstract
The Internet Demand Experiment (INDEX) is a market experiment to measure
demand for Internet access as a function of Quality of Service (QoS), pricing scheme
and application. INDEX subjects choose their desired network services from a menu
of QoS-price o¬erings, which currently consists of di¬erent bandwidth{price choices,
and they pay for their usage of the network services. The approximately 70 subjects
currently in the experiment include faculty, sta¬ and students of the University of
California, Berkeley.
This paper describes the objectives and experimental design and summarizes the
­ ndings to date from the ­ rst four experiments conducted under the INDEX project.
This paper also characterizes the INDEX subject pool using demographic data collected.
Overall, the INDEX ­ ndings indicate that usage is responsive to price signals,
although the degree of responsiveness varies widely across users. The INDEX ­ ndings
also show that the INDEX subject pool is heterogeneous in many respects, including
individual-speci­ c valuations of time and convenience. In addition, we conclude that
users prefer a pricing scheme in which they pay a ®at-rate for basic service and have
access to higher bandwidths that they can use on demand. We also ­ nd that when
usage is free of marginal usage charges, users tend to transmit signi­ cantly greater
volume than when usage is priced at the margin, which lends further support to the
implementation of the suggested pricing scheme.
ISSN
1364-503X
Language
English
URI
http://hdl.handle.net/10371/6854
DOI
https://doi.org/10.1098/rsta.2000.0650
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College of Engineering/Engineering Practice School (공과대학/대학원)Program in Technology, Management, Economics and Policy (협동과정-기술·경영·경제·정책전공)Journal Papers (저널논문_협동과정-기술·경영·경제·정책전공)
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