On flat-rate and usage-based pricing for tiered commodity Internet services

G. Kesidis, A. Das, G. De Veciana

Research output: Chapter in Book/Report/Conference proceedingConference contribution

38 Scopus citations

Abstract

In this note, we discuss issues pertaining to end-to-end qualityof-service management of commodity Internet applications and associated pricing incentive mechanisms. The issue of service differentiation is first studied using a simple twoclass model including delay and throughput sensitive traffic. We show that by introducing service differentiation one can make more efficient use of resources, however this depends on the differences in required QoS as well as the typical capacities of the systems involved. As such, service differentiation may be more beneficial in lower capacity access networks than in high capacity core networks. We then focus on delay-sensitive and study flat-rate versus usage-based pricing under overload conditions. Our results suggest that in overload scenarios usage-based pricing is advantageous both from the system perspective, i.e., reduces degree of overload, and individual users' perspective, increases their perceived utilization.

Original languageEnglish (US)
Title of host publicationCISS 2008, The 42nd Annual Conference on Information Sciences and Systems
Pages304-308
Number of pages5
DOIs
StatePublished - Sep 22 2008
EventCISS 2008, 42nd Annual Conference on Information Sciences and Systems - Princeton, NJ, United States
Duration: Mar 19 2008Mar 21 2008

Publication series

NameCISS 2008, The 42nd Annual Conference on Information Sciences and Systems

Other

OtherCISS 2008, 42nd Annual Conference on Information Sciences and Systems
CountryUnited States
CityPrinceton, NJ
Period3/19/083/21/08

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All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Information Systems
  • Control and Systems Engineering

Cite this

Kesidis, G., Das, A., & De Veciana, G. (2008). On flat-rate and usage-based pricing for tiered commodity Internet services. In CISS 2008, The 42nd Annual Conference on Information Sciences and Systems (pp. 304-308). [4558540] (CISS 2008, The 42nd Annual Conference on Information Sciences and Systems). https://doi.org/10.1109/CISS.2008.4558540