Research
CATEGORY
International Journal Price of Simplicity under Congestion
2015.07.30 10:25
| author | Dongmyung Lee |
|---|---|
| 2nd author | Jeonghoon Mo (Dept. of Information and Industrial Engineering, Yonsei University) Guang Jin (Highbrow Inc.) Jinwoo Park (Dept. of Industrial Engineering, Seoul National University) |
| info | IEEE Journal on Selected Areas in Communications (SCI, 4.232) |
| year | 2012 |
| c | IJ |
| 저널/학회 | IEEE JSAC |
| group | SCI |
| keyword | Pricing, Internet, Flat Price, Two-Part Tariff, Price of Simplicity, Congestion Externality |
| abstract | In this paper, we consider revenues of the NSP (network service provider) when there exists a “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. |
Download : DLee_PoS_IEEE_JSAC_pub.zip