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Demand for different qualities of service for Internet access: a review of INDEX findings
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- Authors
- Issue Date
- 2000-08-15
- Publisher
- Royal Society
- Citation
- Phil. Trans. R. Soc. Lond. A 358, 2319-2334
- Keywords
- Internet access ; pricing ; Internet access demand ; Quality of Service ; experimental 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
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