Ph.D.s' Dissertations Price of Simplicity under Congestion: On the Revenue and Pricing Schemes in the Telecommunication Industry
2015.07.29 18:11
| year | 2013 |
|---|---|
| author | Dongmyung Lee |
| Keyword | Pricing, Internet, Flat Price, Two-Part Tariff, Price of Simplicity, Congestion Externality |
| Abstract | Thus, in this thesis, we reexamine the price of simplicity under the environment that exists congestion externality. In particular, we compare revenues obtained using a flat price and two-part tariff and analyze the effect of congestion on the revenue loss when using a simple entry fee in lieu of the two-part tariff. Previous study has shown that when there is no delay disutility the revenue loss is small, which leads to a low price of simplicity. However, in this study, we show that in an extreme case where all users are identical, the price of simplicity is substantial. Then we consider a more practical scenario where users have different preferences, and show that even in this case, under congestion externality, the price can be extremely high. |
| c | PhD |
Download : 2013_3_Lee_POS.zip