A pricing scheme to maximize social welfare in communication networks

Author

Estévez, J. ; Xiong, H.G. ; Gao, Q. ; Guerrero, E.

Author_Institution

Sch. of Electron. & Inf. Eng., Beijing Univ. of Aeronaut. & Astronaut., Beijing, China

fYear

2009

Firstpage

285

Lastpage

288

Abstract

In this paper, we analyze switching from the current flat-rate Internet pricing to adopt usage-based pricing schemes. Even if flat rate pricing is one of the main reasons for the success of the Internet, the only way to prevent network congestion, differentiate services and maximizes social welfare is to adopt usage-based pricing schemes. Our scheme is highly related to an optimal congestion and cost-sharing pricing scheme for multiclass services applied to communication networks developed by Yezekael Hayel, Bruno Tuffin and design a pricing scheme that maximizes the social welfare which is the total gross value minus the total expected delay cost.

Keywords

Internet; bandwidth allocation; pricing; public administration; telecommunication congestion control; communication networks; cost-sharing pricing scheme; current flat-rate Internet pricing; differentiate services; multiclass services; network congestion; optimal congestion; social welfare; usage-based pricing schemes; Bandwidth; Channel allocation; Communication networks; Costs; Electronic mail; IP networks; Pricing; Resource management; Telecommunication traffic; Web and internet services; Bandwidth allocation; pricing mechanism; social welfare;

fLanguage

English

Publisher

ieee

Conference_Titel

Pervasive Computing (JCPC), 2009 Joint Conferences on

Conference_Location

Tamsui, Taipei

Print_ISBN

978-1-4244-5227-9

Electronic_ISBN

978-1-4244-5228-6

Type

conf

DOI

10.1109/JCPC.2009.5420176

Filename

5420176