The Role of Responsive Pricing in the Internet
(Download full paper)Filed under research category: Internet network economics
Tagged as: Internet_services network_pricing internet_economics network_architecture smart_markets incentive-centered_design
Authors
MacKie-Mason, Jeffrey K., Liam Murphy and John Murphy
Abstract
The recent introduction of user-friendly navigation and retrieval tools for the World Wide Web has triggered an unprecedented level of interest in the Internet among the media and the general public, as well as in the technical community. It seems inevitable that some changes or additions are needed in the control mechanisms used to allocate usage of Internet resources. We argue that a feedback signal in the form of a variable price for network service is a workable tool to aid network operators in controlling Internet traffic. We suggest that these prices should vary dynamically based on the current utilization of network resources. We show how this responsive pricing puts control of network service back where it belongs: with the users.
Citation
Internet Economics, J. Bailey and L. McKnight, eds. Cambridge: MIT Press, 1996: 279-304.