Internet Demand under Different Pricing Schemes

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Altmann, Jorn; Rupp, Bjorn; Varaiya, Pravin
Issue Date
EC’99, ACM Conference on Electronic Commerce (SIGecomm), Denver, Colorado, USA, November 1999
The proliferation of electronic commerce has emphasized
the need for multiple qualities of service (QoS) that meet
user requirements for, e.g., best-e ort services, transactional
guarantees, prioritized services, and bandwidth reservations.
When Internet users will be able to choose from a large selection
of network services, an important question is whether
exibility will be appreciated by the user and how much
value is placed on network resources. This paper focuses on
user acceptance of di erent usage-based pricing models for
network services as well as on which users bene t from dynamic
pricing. The analytic results presented here are based
on pricing experiments conducted within the INternet Demand
EXperiment (INDEX). The pricing experiments comprise
per-minute and byte-volume pricing. After describing
the experimental design and characterizing our subject pool
using demographic data, we analyze user demand for Internet
access by comparing the three experiments in terms of
traÆc generation, QoS selection, and expenditure. Finally,
we show which user groups will bene t from such services.
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College of Engineering/Engineering Practice School (공과대학/대학원)Program in Technology, Management, Economics and Policy (협동과정-기술·경영·경제·정책전공)Others_협동과정-기술·경영·경제·정책전공
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