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2008
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On flat-rate and usage-based pricing for tiered commodity internet services

8 years 8 months ago
On flat-rate and usage-based pricing for tiered commodity internet services
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 usagebased 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.
George Kesidis, A. Das, Gustavo de Veciana
Added 29 May 2010
Updated 29 May 2010
Type Conference
Year 2008
Where CISS
Authors George Kesidis, A. Das, Gustavo de Veciana
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