Pricing Congestible Resources
(Download full paper)Filed under research category: Internet network economics
Tagged as: Internet_services internet_economics network_architecture network_pricing smart_markets incentive-centered_design
Authors
MacKie-Mason, Jeffrey K. and Hal Varian
Publication date
September, 1995
Abstract
We describe the basic economic theory of pricing a congestible resource such as an ftp server, a router, a Web site, etc. In particular, we examine the implications of "congestion pricing" as a way to encourage efficient use of network resources. We explore the implications of flat pricing and congestion pricing for capacity expansion in centrally planned, competitive, and monopolistic environments
Citation
IEEE Journal of Selected Areas in Communications, vol. 13, no. 7, Sept. 1995: 1141-49.